Question: b) Use the Solow model to determine the qualitative impact of this shock on the levels of capital, output, consumption & investment all in per

 b) Use the Solow model to determine the qualitative impact of

b) Use the Solow model to determine the qualitative impact of this shock on the levels of capital, output, consumption & investment all in per effective worker terms in the long-run. Are your answers in part b consistent with those you found in part A? Explain why or why not. Use the Solow model to determine the qualitative impact of this shock on the levels of capital, output, consumption & investment all in per effective worker terms in the new steady state that results following this shock. Support your answer with one Solow model diagram. (10 points) NOTE: Fill in the following table to submit along with your answer to this part. Do not forget to provide an economic explanation as to why this change did or did not occur. Variable artb Chan_e if an Ex-lanation Capital per effective worker R Output per effective worker (LR) Consumption per effGCtive worker LR Investment per effective worker (LR) Ca - ital er effective

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