Hi, please help me with question M to Y, thank you:
Multiple periods of Basic Solow model Consider a basic Solow model with the following parameters given: (ko 0.05, s = 40,8 0.3, 0.4, %3D 0, 1) Solve for the following values (where io is the investment per person in period 0): (*you are welcome to try doing this using Excel. In fact, I highly recommend you try doing it by hand AND by Excel. We will require your answer to be correct to several decimal places and Excel will help with that. Also, finding the solution for period 15 will be much easier in Excel.) . Yo b. C . io d. k1 = . 1 f. %3 g. 1= h. k2 = i. y5 = j. C15 k. 1= . ki6 = Next, suppose the economy converged to steady state in period 100 (in reality it would take an infinite number of periods but 100 would get us pretty close). Solve for the steady state values and the following period m. k100 kss = n. y100 Yss = O. C100 Css = . i100 iss q. 101 = y101 S. k102= r Next suppose in period 103 there is a change in the economy and the population growth rate changes so that instead of n = 0, there is net population growth, n = 0.05. Assuming all other parameters remain the same, solve for the following values: (note, there is no changee in the population going into period 103, so the economy is still in steady state until period 104) t. k104 . 105 = v. k106 = Finally, suppose the economy converges to a new steady state given the original parameters and the new population growth rate n = 0.05 W. kes= X. yss= _ . Css Multiple periods of Basic Solow model Consider a basic Solow model with the following parameters given: (ko 0.05, s = 40,8 0.3, 0.4, %3D 0, 1) Solve for the following values (where io is the investment per person in period 0): (*you are welcome to try doing this using Excel. In fact, I highly recommend you try doing it by hand AND by Excel. We will require your answer to be correct to several decimal places and Excel will help with that. Also, finding the solution for period 15 will be much easier in Excel.) . Yo b. C . io d. k1 = . 1 f. %3 g. 1= h. k2 = i. y5 = j. C15 k. 1= . ki6 = Next, suppose the economy converged to steady state in period 100 (in reality it would take an infinite number of periods but 100 would get us pretty close). Solve for the steady state values and the following period m. k100 kss = n. y100 Yss = O. C100 Css = . i100 iss q. 101 = y101 S. k102= r Next suppose in period 103 there is a change in the economy and the population growth rate changes so that instead of n = 0, there is net population growth, n = 0.05. Assuming all other parameters remain the same, solve for the following values: (note, there is no changee in the population going into period 103, so the economy is still in steady state until period 104) t. k104 . 105 = v. k106 = Finally, suppose the economy converges to a new steady state given the original parameters and the new population growth rate n = 0.05 W. kes= X. yss= _ . Css
