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Ramsey Cass Koopmans model. ( a ) Consider the Ramsey Cass Koopmans model where ???? at time 0 ( which as always the model

Ramsey Cass Koopmans model.

(a) Consider the Ramsey Cass Koopmans model where ???? at time 0 (which as always

the model takes as given) is at the golden-rule level: ????(0)=????????????

Sketch the paths of ???? and ????.

(b) Consider the same initial situation as in part (a), but in the version of the model

that includes government purchases. Assume that ???? is constant and equal bar (????).

Crucially, bar (????)???? is strictly less than ????(????????????)-(????+????)???????????? and strictly greater than ????(????**)

(????+????)????** (where ????** is the level of ???? on the balanced growth path the economy

would have if G were constant and equal to 0 ). Sketch the paths of ???? and ????.

I have repeated khis question. The last one I sent was not attended to. Again, I am particularly

interested in the sketches. Can somebody walk me through?

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