Question: Please answer and explain all steps/details! No assumptions! a. Assume that the rate of population growth n is a function of k and answer the
Please answer and explain all steps/details! No assumptions!
a. Assume that the rate of population growth "n" is a function of k and answer the following questions:
i). Assuming that "n" is a decreasing function of k, draw the savings and depreciation curves based on the fundamental model Solow-Swan. ii) When we have "n" as a constant, we have a unique steady state. Does the steady state remain unique if "n" becomes a negative function of k? iii) Explain the necessary conditions needed for the steady state to be considered unique?
g. Explain the stability properties for each steady state we get when we have more than one steady state. Do we also get "poverty traps"? Why or why not? h. Based on your previous answers and your reasoning, explain whether its possible for aid to permanently change a country's GDP.
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