Question: Consider the standard Solow model with a piecewise-linear production function which is given by Y (t) = 1K(t) + 1A(t)L(t) if K(t) A(t)L(t) < 1,

Consider the standard Solow model with a piecewise-linear production function which is given by Y (t) = 1K(t) + 1A(t)L(t) if K(t) A(t)L(t) < 1, 2K(t) + [(1 2)1 + 1]A(t)L(t) if 1 K(t) A(t)L(t) < 2, 3K(t) + [(1 2)1 + (2 3)2 + 1]A(t)L(t) if K(t) A(t)L(t) > 2

What are the conditions for the model to have a unique stable equilibrium for k in the interval [1, 2]? And in the interval [2, )? Explain.1

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