Question: Consider the Solow model with a Cobb- Douglas production, labor and capital share of output are identical, technological progress growing at rate g, depreciation at

Consider the Solow model with a Cobb- Douglas production, labor and capital share of output are identical, technological progress growing at rate g, depreciation at rate d, and population growth at rate n. Suppose the economy is currently in a steady - state.

What happens to steady- state capital per worker k* and output per worker y* when a country experiences a decline in birth rates due to the COVID-19 pandemics?

A. k* decreases' y*increases

B. k* decreases' y*decreases

C. k* increases' y*increases

D. k* increases' y*decreases

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