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please use Mathematica to do it. Thanks You are an economist working for the US government and are asked to answer the following questions using
please use Mathematica to do it. Thanks
You are an economist working for the US government and are asked to answer the following questions using the Solow Growth Model. The production function is: Y = 0.4 (AL) 0.6 Population growth is 1%. The saving rate is 10%. The depreciation rate is 5%. The growth rate of technological progress is 2%. a. The government wants to implement a policy to increase the national saving rate from 10% to either 14% or 16%. Present one graph showing the evolution of output per effective worker in the three scenarios. b. Starting from the steady state with a saving rate of 10%, suppose the government increases the saving rate to 16%. Calculate the growth rate of output per effective worker 8 years into the transition between the two steady states. C. Calculate the percentage change in output per effective worker in each scenario over the course of year 4 of its implementation. You are an economist working for the US government and are asked to answer the following questions using the Solow Growth Model. The production function is: Y = 0.4 (AL) 0.6 Population growth is 1%. The saving rate is 10%. The depreciation rate is 5%. The growth rate of technological progress is 2%. a. The government wants to implement a policy to increase the national saving rate from 10% to either 14% or 16%. Present one graph showing the evolution of output per effective worker in the three scenarios. b. Starting from the steady state with a saving rate of 10%, suppose the government increases the saving rate to 16%. Calculate the growth rate of output per effective worker 8 years into the transition between the two steady states. C. Calculate the percentage change in output per effective worker in each scenario over the course of year 4 of its implementationStep by Step Solution
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