Consider the following case of the Malthusian model. Let Nt be the population at the beginning of period t. Aggregate output in period t is given by Ct= Yt = zNt 2/3 Lt 1/3 where z = 1.2.

The total population at the beginning of period 0 is N0 = 100 and L=100.

The population at the beginning of period t + 1 is given by Nt+1 = g(?? ?? )Nt.

Consider that g(?? ?? )=ct 1/3. Assume Aggregate consumption at T=0 is C0=120

1. Plot the time path of the population for t= {0,1,2,3} (show your work and label the graph)

2. Plot the per-capita consumption levels for periods t= {0,1,2,3}. (Show your work and label the graph)

3. Knowing that in the long run and at period t=98, N98=172.79 and C98=172.79, where c*=C/N=1. Determine graphically the Steady State c* and l* (land per worker) in the Malthus Model.

3. Policy Intervention: Consider what kind of policy interventions might help achieve the more desirable equilibrium (widespread adoption- Good equilibria). Question 9 Consider the following case of the Malthusian model. Let N: be the population at the beginning of period t. Aggregate output in period t is given by Ci= Y:= zN,2/3L/3 where z = 1.2. The total population at the beginning of period 0 is No= 100 and L-100. The population at the beginning of period t + 1 is given by Nel = g()Nt. Consider that g(v.)=ctl/3. Assume Aggregate consumption at T=0 is Co=120 1. Plot the time path of the population for t= (0,1,2,3) (show your work and label the graph) 2. Plot the per-capita consumption levels for periods t- {0,1,2,3). (Show your work and label the graph) 3. Knowing that in the long run and at period t=98, N9:=172.79 and Cas=172.79, where c*=C/N=1. Determine graphically the Steady State c* and I* (land per worker) in the Malthus Model. 3