2. Compute the steady state values for g 1, g>; and K,/Y, before and after the parameter change.

Simulate the model consisting of Eqs (5)- (10) over periods 0 to 200 assuming that from period 0- 1 0 the economy is in steady state at the old parameter values. (As we did in Section 5, normalize, e.g., L0 = 1, and find the initial values, A0 and K0, implied by the economy being in steady state in period 0.) Create figures like in Section 5 showing the evolution of g,. g>; and K,/Yr Comment with respect to how long lasting the positive effect on g>;is.