In the Solow Model, an Earthquake That Destroys Half of a Nation's

Multiple Choice

In the Solow model, an earthquake that destroys half of a nation's capital stock will cause:

A) an increase in the country's growth rate in the years following the earthquake.
B) a decrease in the country's growth rate in the years following the earthquake.
C) a decrease in the country's steady-state capital stock.
D) an increase in the country's steady-state output level.