Support your answer with a graph of the Solow Model and as many equations as possible. 3.b)

Support your answer with a graph of the Solow Model and as many equations as possible.

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3.b) (18 points) Suppose an earthquake destroys one-quarter of the capital stock (K) in Turkey. Assuming the economy is in a steady- state equilibrium just before the earthquake hits (i.e., y=y* and k=k*), check if the following statement is true or false: "If the earthquake destroys one quarter of the capital stock but less than one quarter of the labour force, then (i) in the short run capital per worker and output per worker will fall below their steady state values (k<k* and y<y*); ii) income per worker will grow until it reaches its steady state value; and (iii) the capital per worker and output per worker will return to their initial steady state (i.e., y=y* and k=k*)." © copyright 3.b) (18 points) Suppose an earthquake destroys one-quarter of the capital stock (K) in Turkey. Assuming the economy is in a steady- state equilibrium just before the earthquake hits (i.e., y=y* and k=k*), check if the following statement is true or false: "If the earthquake destroys one quarter of the capital stock but less than one quarter of the labour force, then (i) in the short run capital per worker and output per worker will fall below their steady state values (k<k* and y<y*); ii) income per worker will grow until it reaches its steady state value; and (iii) the capital per worker and output per worker will return to their initial steady state (i.e., y=y* and k=k*)." © copyright