An economy starts in steady state. A war causes a massive destruction of the capital stock. This shock will cause
A. the economy to converge to a new lower steady state.
B. the economy to enter a period of negative growth.
C. the growth rate of output to rise initially as the economy begins to converge to a new lower steady state.
D. the growth rate of output to rise initially as the economy begins to converge to the old steady state
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