Analyzing consumption per worker in the long run under different situations according the Solow growth model.
Suppose that the economy starts in steady state. As per to the Solow growth model, explain how would each of the following affect consumption per worker in the long run assume that the growth model is AK?
a) The destruction of a portion of the nation's capital stock in a war.
b) A temporary rise I the saving rate.
c) An increase in government regulations whose net effect is to lower the marginal productivity of capital.