3. Graph and explain using the equation of motion, how an increase in the population savings rate affect the equilibriu
Posted: Sat Feb 19, 2022 2:43 pm
3. Graph and explain using the equation of motion, how an
increase in the population savings rate affect the equilibrium
level of per capita capita, and per capita income.
4. Using your answer for question 3, assess whether the
savings rate and the growth rate of income are correlated, or
uncorrelated in the long run, that is, when the economy has had
enough time to move from its original steady state equiibrium with
savings rate 1, to its new equilibrium with savings rate
2.
increase in the population savings rate affect the equilibrium
level of per capita capita, and per capita income.
4. Using your answer for question 3, assess whether the
savings rate and the growth rate of income are correlated, or
uncorrelated in the long run, that is, when the economy has had
enough time to move from its original steady state equiibrium with
savings rate 1, to its new equilibrium with savings rate
2.