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Question 37 2 pts Which of the following is consistent with the principle of Transition Dynamics in the Solow model? O The closer the economy is to the steady state, the slower capital accumulation will be. O Steady state can be reached only if the capital stock grows faster and faster. O Steady state can be reached only from below (the economy growing towards it). O Steady state can be reached only from above (the economy contracting towards it). Question 38 2 pts Suppose that at the beginning of period t, before any production took place, a flood destroys half the machinery and equipment of country A, which of the following is true? O Output per capita in period t falls but it eventually goes back to the same steady state level pre flood. O The savings rate falls. O The marginal propensity to consume falls to compensate the loss of machinery