Question: this was all the information that was given PLEASE HELP the questions are below Suppose you are an economist at the African division of the

this was all the information that was given PLEASE HELP the questions are below

this was all the information that was given PLEASE HELP the questionsare below Suppose you are an economist at the African division ofthe World Bank, and you and your group are currently worried aboutthe case of Nigeria. You want to convince the board to provide

Suppose you are an economist at the African division of the World Bank, and you and your group are currently worried about the case of Nigeria. You want to convince the board to provide nancial aid to the country. a) First, you need to make a strong case that Nigeria needs help. Using data on Constant GDP per capita for Nigeria and Botswana between 1960 and 2019, plot a graph to compare the growth of these two economies. What do you see? Which country was richer in 1960? Which country was richer in 2019? Which country grew faster since 1960? b) Now you need to argue that international aid will help. Assume that the income transferred to Nigeria will increase the disposable income of the population such that consumption will be C=UU+U, where T is the international aid. Assume that the rest of the economy is identical to the one we studied in week 5. i. Find an equation that relates capital per capita in the future k' with capital per capita today it. Denote international aid per capita by t = T/N. ii. Find an equation that represents a steadystate condition. iii. In a graph with capital per capita in the steadystate in the xaxis and investment per capita and depreciation per capita in the yaxis, draw the investment per capita curve and two depreciation per capita curves: one with no aid (t = 0) and one with aid (t > 0). iv. In the graph, identify both stocks of capital per capita in the steadystate. What is the conclusion? Will international aid increase the standards of living in Nigeria? Will it increase the longrun growth rates of the country? Before the big presentation, you show your arguments to your supervisor, William E. He congratulates you on your datadriven motivation and your rigorous analysis. He is just worried about one detail: \"The last time we provided international aid to an African country, the president in the o'ice used the resources to nance a war against revolutionary groups. It led to a civil war and massive destruction of the total stock of capital. \" 0) Use the graph produced in item biii (with only the depreciation per capita in the case where t = 0) to show the effect of a decrease in total capital stock on the standards of living in the long run. If that is the case, do you have a strong case in favor of international aid? Rubric: Plot the appropriate graph to compare growth rates over time (3120mm). Make sure to use the data with the exact name from the FRED website (the source must be World Bank). Answer the questions (2 points). Rubric: To nd the equations in items 1,. and ii. you must show all the steps. Start with the investment equation, then the dynamics of total capital, and nally, the dynamics of per capita capital (3 points). From the dynamics of per capita capital, show the steady-state condition (2 points). Then, draw the steady-state analysis graph with two depreciation per capita curves (3 points). Label the axes and the curves (2 points). Identify both steady-state per capita capital stocks (2 points). Explain with words whether international aid will make Nigeria richer (2 points). Explain with words whether Nigeria will grow faster in the long run after the aid (I point). Rubric: Draw the steady-state analysis graph with only one depreciation per capita curve, assuming T = 0. Label the axes and the curves. Identify the steady-state per capita capital stock (I point). Show, in the graph, what happens if a part of capital stock is destroyed (I paint). Show the new stock of capital per capita in the long run after the destruction (I paint). Explain with words whether, in this case, international aid would make Nigeria richer in the long run (2 points)

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