A very simple model for the economy is given by I = I KS, S =

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A very simple model for the economy is given by I˙ = I − KS, S˙ = I − CS − G0, where I represents income, S is the rate of spending, G0 denotes constant government spending, and C and K are positive constants.

(a) Plot possible solution curves when C = 1 and interpret the solutions in economic terms. What happens when C = 1?

(b) Plot the solution curve when K = 4,C = 2,G0 = 4, I (0) = 15, and S(0) = 5. What happens for other initial conditions?

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Dynamical Systems With Applications Using Mathematica

ISBN: 978-3319870892

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Authors: Stephen Lynch

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Question Posted: Sep 20, 2024 06:04 AM

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A very simple model for the economy is given by I = I KS, S =

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Dynamical Systems With Applications Using Mathematica

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