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solow in jupiter notebook Exercise 1 Consider the Solow class provided in the file 1_4_Solow_class. ipynb 1. Assume two economies (A, B) with the same

solow in jupiter notebook

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Exercise 1 Consider the Solow class provided in the file 1_4_Solow_class. ipynb 1. Assume two economies (A, B) with the same initial capital k-1 , but different saving rate. Let the saving rate of the economy A be the default one, Le, s = 0.25, and for the economy B >; = 0.20. Use the Solow class to compute and plot the capital per capita time series (7 = 60) for two different saving rates. All other parameters as in the default economy. In the same figure, also plot the steady state values for both economies 2. Modify the Solow class to be able to calculate the growth rate of output per capita (recall that y, = zk"). Then use your class to compute and plot the growth rate time series (7' = 60)) for two different economies - economy C with the default productivity zo = 2.0 and another economy D with 21 = 1.0. All other parameters as in the default economy, In the same figure, also plot the steady state values for both economies

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