Question: (A) Based on the Solow Model, production function Y = F(K,L). answer the following questions. (i) Covid-19 pandemic has caused total death about 30% of

(A) Based on the Solow Model, production function Y = F(K,L). answer the following questions.

(i) Covid-19 pandemic has caused total death about 30% of total population in Malaysia. Explain what would happen to the economic growth and the steady level. (10 marks)

(ii) The Covid-19 has decreased fertility rate more 50% in Malaysia. Explain what would happen to the future labour force? (5 marks).

(iii) Explain the "Golden Rule". (5 marks)

(iv) Explain how does the firm choose level of capital and labour in production. (5 marks)

(v) How does the market clearing occurs? (5 marks)

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