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(b) Assume the economy is at steady - steady until the rate of depreciation suddenly experiences a permanent increase at 1. Use the following parameter values: A = 1, x = 0.5L 1,s = 0.2 where s is the saving rate and > is the depreciation rate, and complete the following table (show your working for row 2 only): Round to two decimal places. You may, though are not required to, use Excel or similar for this task. Also pls help me Comment on how persuasive the results of part (b) are. (b) Assume the economy is at steady-steady until the rate of depreciation suddenly experiences a permanent increase at t = 1. Use the following parameter values: A = 1 L= 1 a = 0.5 8 = 0.2 8 = (0.10 t<1 (0.15 t≥1 where s is the saving rate and 8 is the depreciation rate, and complete the following table (show your working for row 2 only): Period (t) Capital Stock (K) Output (Y) Saving (St) Investment (I) 1 Consumption (C₁) (This row will be your steady state values from part a). 2 3 4 9 10 Round to two decimal places. You may, though are not required to, use Excel or similar for this task.

(b) Assume the economy is at steady - steady until the rate of depreciation suddenly experiences a permanent increase at 1. Use the following parameter values: A = 1, x = 0.5L 1,s = 0.2 where s is the saving rate and > is the depreciation rate, and complete the following table (show your working for row 2 only): Round to two decimal places. You may, though are not required to, use Excel or similar for this task. Also pls help me Comment on how persuasive the results of part (b) are. (b) Assume the economy is at steady-steady until the rate of depreciation suddenly experiences a permanent increase at t = 1. Use the following parameter values: A = 1 L= 1 a = 0.5 8 = 0.2 8 = (0.10 t<1 (0.15 t≥1 where s is the saving rate and 8 is the depreciation rate, and complete the following table (show your working for row 2 only): Period (t) Capital Stock (K) Output (Y) Saving (St) Investment (I) 1 Consumption (C₁) (This row will be your steady state values from part a). 2 3 4 9 10 Round to two decimal places. You may, though are not required to, use Excel or similar for this task.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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(b) Assume the economy is at steady - steady until the rate of depreciation suddenly experiences a permanent increase at 1. Use the following parameter values: A = 1, x = 0.5L 1,s = 0.2 where s is the saving rate and > is the depreciation rate, and complete the following table (show your working for row 2 only): Round to two decimal places. You may, though are not required to, use Excel or similar for this task. Also pls help me Comment on how persuasive the results of part (b) are. (b) Assume the economy is at steady-steady until the rate of depreciation suddenly experiences a permanent increase at t = 1. Use the following parameter values: A = 1 L= 1 a = 0.5 8 = 0.2 8 = (0.10 t<1 (0.15 t≥1 where s is the saving rate and 8 is the depreciation rate, and complete the following table (show your working for row 2 only): Period (t) Capital Stock (K) Output (Y) Saving (St) Investment (I) 1 Consumption (C₁) (This row will be your steady state values from part a). 2 3 4 9 10 Round to two decimal places. You may, though are not required to, use Excel or similar for this task.
Transcribed Image Text:(b) Assume the economy is at steady - steady until the rate of depreciation suddenly experiences a permanent increase at 1. Use the following parameter values: A = 1, x = 0.5L 1,s = 0.2 where s is the saving rate and > is the depreciation rate, and complete the following table (show your working for row 2 only): Round to two decimal places. You may, though are not required to, use Excel or similar for this task. Also pls help me Comment on how persuasive the results of part (b) are. (b) Assume the economy is at steady-steady until the rate of depreciation suddenly experiences a permanent increase at t = 1. Use the following parameter values: A = 1 L= 1 a = 0.5 8 = 0.2 8 = (0.10 t<1 (0.15 t≥1 where s is the saving rate and 8 is the depreciation rate, and complete the following table (show your working for row 2 only): Period (t) Capital Stock (K) Output (Y) Saving (St) Investment (I) 1 Consumption (C₁) (This row will be your steady state values from part a). 2 3 4 9 10 Round to two decimal places. You may, though are not required to, use Excel or similar for this task.
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