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1. In the Malthusian model, suppose that the quantity of land increases. (a) Using diagrams, determine what effects this has in the long-run steady state
1. In the Malthusian model, suppose that the quantity of land increases. (a) Using diagrams, determine what effects this has in the long-run steady state and explain your results. (b) Plot what happens to the following variables over time as a result of the increase in the quantity of land, Nt (population size) and ct (consumption per person). 2. In the Malthusian model, suppose that there is a technological advance that reduces death rates (which in turn increases the population growth rate). (a) Using diagrams, determine the effects of this in the long-run steady state and explain your results (b) Plot what happens to the following variables over time as a result of the reduction in death rates, Nt (population size) and ct (consumption per person). 3. Suppose that the depreciation rate increases in the Solow growth model. Using a diagram, determine the effects of this on the quantity of capital per worker and on output per worker in the steady state. Explain the economic intuition behind your results. 4. Suppose that the economy is initially in a steady state and that some of the nation's capital stock is destroyed because of a natural disaster or a war. (a) Please plot what happens to capital per worker and output per worker over time as a result of the natural disaster (or war). (b) Determine the long-run effects of this on the quantity of capital per worker and on output per worker
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