The Malthusian Model

1. a)Explain fully the two key assumptions of the Malthusian Model regarding the production function and population growth.
2. b)What is true about wages and population growth in a Malthusian equilibrium?
3. c)Draw the real wage curve graph and the population growth rate graph of the Malthusian Model. Indicate on the graphs the initial Malthusian equilibrium.
4. d)Now suppose there is a one-time technological innovation. What happens to the average product of labor and the real wage curve?
5. e)Given your answer to part d), use the two graphs of the Malthusian model to show and explain fully what happens to wages, population growth and the size of the population as the economy transitions from an initial to a new Malthusian equilibrium. Indicate in your graphs the transition of real wages and population as the economy makes from the initial to the new Malthusian equilibrium.
6. f)What happened to labor productivity (average product of labor) as a result of the Industrial Revolution? Draw the Malthusian Model graphs again and to explain how the Industrial Revolution resulted in an escape from the Malthusian Trap, resulting in both rising wages and an increasing population.
7. g)What is the"demographic transition"? How does the"demographic transition"that began in the 20thcentury imply a change in the Malthusian model assumptions for population growth?