The dynamics of the stationary system are given by

widetilde$(k{)}^{}=$swidetilde$(y)-(n+g+)widetilde(k)$

$($b$)$ Plot the components of the RHS of Equation $(6)$ and show the steady state of the system

in the graph.

$($c$)$ Calculate the steady state level widetilde$(y{)}^{**}$ as a function of s$,$n$,$g and $.$

$($d$)$ What is the growth rate of $Y$ along the BGP$?$

$($Q$2)$ Solow Growth Model $-$ Comparative Statics

The savings rate in the economy given in $($QI$)$ increases. Discuss the implications of an increase

in the saving rate for the:

equilibrium value of widetilde$(y{)}^{**}$

the growth rate of aggregate output $(Y)$

derived in Q$1.$ Show the effect of an increase in the saving rate on the dynamics of the stationary

system given by Equation $(6).$