Write down 5 equations, 5 endogenous variables, and exogenous variables/parameters of the Solow model.  

 What is the equation we use to draw the Solow-diagram? Show the steps and explain how you drive the equation from the above model of five equations.

 Based on the equation you got from the above question, draw the Solow-diagram. Be sure you clearly label each axis. Be sure to clearly indicate which part of graph comes from which part of equation.

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The Solow model is a classic model of economic growth that was first introduced by Robert Solow in the 1950s The model is based on the following five equations The production function equation Y AK1LT ... View the full answer