Question: Please answer this question Question 1 (70 Points) Lately. your country has been discussing the impact of less immigrants due to the spread of CDVIDl'}.

Please answer this question

Please answer this question Question 1 (70 Points) Lately. your country has

Question 1 (70 Points) Lately. your country has been discussing the impact of less immigrants due to the spread of CDVIDl'}. Suppose that you are hired as an economic advisor. Your project is to do this analysis on the basis of the optimal growth model. In your model. there is no productivity growl]. that the population grows at a constant rate it. and depreciation is the constant at 5. Utility function is U [C] = $1": and the production function is r = trawl-. Answer fotlowing questions. (a) [It] Points) Derive conditions for nding the dynamics of {Ch K.- H10 and the steady state (Warning: Not get a full credit if you write down the conditions only). (h) {25 Points) Suppose that the economy of your country is initially in the steady state. Here is your idea: the spread of COVIDIQ will be temporary. so that immigrants will enter into your country in the nuts toodistant future. Put dierently. there is a onetime decrease in the labor force from inunigration (N'

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