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4. Computer Question For this question, you will need to get access to a computer with a spreadsheet program like Excel. Using the Spreadsheet, you

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4. Computer Question For this question, you will need to get access to a computer with a spreadsheet program like Excel. Using the Spreadsheet, you will simulate the Solow model we discussed in class. Start with a Solow model similar to the one we analyzed in class: s=.15 52.1 052.35 Y = A\" .KfNj-a N, =1 (in every period) A = l a.) Calculate the steady state level of capital and output (show work). Now I want you to simulate this economy. To do this, pick a column of cells and enter an initial capital stock number (K0) in the \"top\" cell. In the cell directly below this you will calculate next period's capital using the following equation from the lectures: K,+1 = K, (1 6) + SAME," . In Excel this equation is written like this (assume you choose column A for the capital stock): cell A1: K0 (some initial number, say 5) cell A2: \" =A1*(1 - .1) + .15*(1".65) *(AIA.35)\" (Obviously do not include the \" \" marks in the entry). The \"=\" sign tells Excel that the entry is not a number or character but rather a command to be carried out. The term \"Al".35\" tells Excel to raise the number in cell A1 to the power 0.35 (a = .35). Now the easy part: highlight cell A2 and copy it onto cells A3 A100. If you check each entry they should each refer to the cell \"above\" it (e.g., A35 will refer to A34 in the command... etc.). By changing the entry in Al (the initial capital stock) you change the entire string of values. b.) Start the economy with the steady state level of capital from (a). Plot the time path of the model (highlight the column of numbers, click on the \"instert\" tab, then under \"charts,\" click on \"line\"). Start with a level of capital above the steady state, then below steady state. Plot each of these time paths. Is there convergence

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