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pls details! thanks Question 2 - 8 points The gure below plots the gross savings as a (97E: of GDP) reported by the 1World Bank

pls details! thanks

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Question 2 - 8 points The gure below plots the gross savings as a (97E: of GDP) reported by the 1World Bank for two Countries: Bangladesh and Japan. Assume that this rate refers to the savings rate (5} in our simple Solow Model. 1. Assume that this trend continues for a very).r long run. Draw a well-labelled graph that illustrates the steady state of the Solow model with population growth (but without tech- nological progress and ignoring many other plausible variables]. Use the graph to nd what happens to steady state capital per worker and income per worker in response to endogenous changes in savings rate for both countries, as represented in the below gure. (6 points). 2. Now suppose that the higher severityr of the impact of climate change leads to a higher depreciation rate in Bangladesh. Show in a separate graph, how this will affect the steady state capital per worker and income per-worker in Bangladesh [2 points}. LABEL BANGLADESH JAPAN 32 2010 2012 1945 1898 3000 3002 Figure 1: Savings Rate in Bangladesh and Japan

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