(Solved): Q3 (20 points) Consider the Solow model that we have studied in class. Assume that the economy star ...

Q3 (20 points) Consider the Solow model that we have studied in class. Assume that the economy starts at the steady state. Then at time \( t \), there is a sudden shock to the entire economy due to a quick spread of a new disease that is not fatal but makes people tire out very quickly. b) (10 points) Please provide eight separate well-labeled time paths that show how aggregate and per capita capital, output, investment and consumption would behave across time as a result of the shock (you will have two-time paths for each variable, one for the aggregate and one for the per capita variant of the variable).