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Describe and graph how each of the following affect the k = 0 and c' == 0 locus. How does c and k react immediately after change and what is the new steady state? Note: k and c will denote per intensive unit of labor (same as k^ and c^ in the lecture slides). a) Permanent fall in productivity growth rate g. b) Rise in the preference for today's consumption \theta. c) Proportional downward shift of production function f(k). d) Increase in the depreciation rate of capital \delta. Dynamics of the Economy Also show the graph please Dynamics of the Economy c=0 č(k) L k=0

Describe and graph how each of the following affect the k = 0 and c' == 0 locus. How does c and k react immediately after change and what is the new steady state? Note: k and c will denote per intensive unit of labor (same as k^ and c^ in the lecture slides). a) Permanent fall in productivity growth rate g. b) Rise in the preference for today's consumption \theta. c) Proportional downward shift of production function f(k). d) Increase in the depreciation rate of capital \delta. Dynamics of the Economy Also show the graph please Dynamics of the Economy c=0 č(k) L k=0

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Production And Growth
Section17.1: Economic Growth Around The World
Problem 1QQ
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Describe and graph how each of the following affect the k = 0 and c' == 0 locus. How does c and k react immediately after change and what is the new steady state? Note: k and c will denote per intensive unit of labor (same as k^ and c^ in the lecture slides). a) Permanent fall in productivity growth rate g. b) Rise in the preference for today's consumption \theta. c) Proportional downward shift of production function f(k). d) Increase in the depreciation rate of capital \delta. Dynamics of the Economy Also show the graph please
Transcribed Image Text:Describe and graph how each of the following affect the k = 0 and c' == 0 locus. How does c and k react immediately after change and what is the new steady state? Note: k and c will denote per intensive unit of labor (same as k^ and c^ in the lecture slides). a) Permanent fall in productivity growth rate g. b) Rise in the preference for today's consumption \theta. c) Proportional downward shift of production function f(k). d) Increase in the depreciation rate of capital \delta. Dynamics of the Economy Also show the graph please
Dynamics of the Economy c=0 č(k) L k=0
Transcribed Image Text:Dynamics of the Economy c=0 č(k) L k=0
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