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2. Construct the cobweb diagram for, a. Nt+1 = (1+r) Nt 1+rNt Nt > 0 b. xn+1 = xn x + 1/1/x/1 Determine the

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2. Construct the cobweb diagram for, a. Nt+1 = (1+r) Nt 1+rNt Nt > 0 b. xn+1 = xn x + 1/1/x/1 Determine the stability of fixed points in each case for any real-valued r. For part (b), find all of the equilibria and only determine the stability of equilibrium at the origin.

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Cobweb Diagrams and Stability Analysis a Nt1 1rNt 1rNt Nt 0 Cobweb Diagram Draw a diagonal line y x representing Nt1 Nt This line indicates no change ... blur-text-image

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