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(g) Calculate Ext) in column K in a manner similar to the way that you set up the saving rate. First enter the shock, column
(g) Calculate Ext) in column K in a manner similar to the way that you set up the saving rate. First enter the shock, column heading and initial value in erlk K23 to K2. Then model the evolution of E(t) in cells K27 though KAS using E-9) - E[-10jet with, for example, the value in call K27 ghen by - K26 + EXP(C26 + 1) and similarly for the remaining cells in column K. (h) Add the ability to incorporate the shock to E(t) at t - 0 with the equation K36-EXP (C36 . 1) :K23 in cell KSs. (l) The shock to E at : - 0 will also impact w(t). In addition, a shock to NO)/L(} at f - 0 will also impact w(!). We will incorporate the shocks to E(() and K(0)/1[0) through the use of factors that we will refer to as fr and fun, respir- thely. At t - 0 we have that into which we can introduce the shock factors as follows Lit) E(DL() OF with the equation . (835+135.1). (123/K23) in cell H36. (j) Add the Balanced and Actual growth paths for V(t)/L(t) in columns L and M RE(t) for Balanced. YOO/LO- "" E(t) for Actual
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