Would the answer be D because when N decreases K increases, so vice versa.
Problem 3 At the beginning of the 14th century, Europe was hit by the Black Death. Thisplague resulted in the death of a large portion of the population (it is estimatedthat between 30% and 60% of the population was killed). Because capital perworker is k=KIL, the large decrease in L resulted in larger levels of capital perworker k. Therefore, say Europe finds itself, after the Black Death, above its longrun steady state level of output per worker (so capital per worker is above itssteady state value). Assume that technology, population growth and savingsremained constant. The subsequent decades should have seen: a. rising consumption per worker, along with falling investment and capital perworker. b. falling capital per worker, along with rising investment and consumption perworker. c. falling capital per worker and investment per worker, but rising consumptionper worker. d. rising consumption per worker, capital per worker and investment per worker. e. falling consumption per worker, capital per worker and investment perworker.