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Consider the two-sector macroeconomic model: =0.2(+) =0.8+420 =300 a) Find an expression for () when (0)=8000. b) Hence find an expression for the savings function
Consider the two-sector macroeconomic model: =0.2(+) =0.8+420 =300 a) Find an expression for () when (0)=8000. b) Hence find an expression for the savings function (). c) Find the time taken for income to fall to 4150, and find the rate of change of income at this time. Give your answers to the nearest whole number.
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