(b) Assume the economy is at steady - steady until the rate of depreciation suddenly experiences a permanent increase at 1. Use the following parameter values: A = 1, x = 0.5L 1,s = 0.2 where s is the saving rate and > is the depreciation rate, and complete the following table (show your working for row 2 only): Round to two decimal places. You may, though are not required to, use Excel or similar for this task. Also pls help me Comment on how persuasive the results of part (b) are. (b) Assume the economy is at steady-steady until the rate of depreciation suddenly experiences a permanent increase at t = 1. Use the following parameter values: A = 1 L= 1 a = 0.5 8 = 0.2 8 = (0.10 t<1 (0.15 t≥1 where s is the saving rate and 8 is the depreciation rate, and complete the following table (show your working for row 2 only): Period (t) Capital Stock (K) Output (Y) Saving (St) Investment (I) 1 Consumption (C₁) (This row will be your steady state values from part a). 2 3 4 9 10 Round to two decimal places. You may, though are not required to, use Excel or similar for this task.

(b) Assume the economy is at steady - steady until the rate of depreciation suddenly experiences a permanent increase at 1. Use the following parameter values: A = 1, x = 0.5L 1,s = 0.2 where s is the saving rate and > is the depreciation rate, and complete the following table (show your working for row 2 only): Round to two decimal places. You may, though are not required to, use Excel or similar for this task. Also pls help me Comment on how persuasive the results of part (b) are. (b) Assume the economy is at steady-steady until the rate of depreciation suddenly experiences a permanent increase at t = 1. Use the following parameter values: A = 1 L= 1 a = 0.5 8 = 0.2 8 = (0.10 t<1 (0.15 t≥1 where s is the saving rate and 8 is the depreciation rate, and complete the following table (show your working for row 2 only): Period (t) Capital Stock (K) Output (Y) Saving (St) Investment (I) 1 Consumption (C₁) (This row will be your steady state values from part a). 2 3 4 9 10 Round to two decimal places. You may, though are not required to, use Excel or similar for this task.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 1.3CE: Logarithms are especially useful for comparing series with two divergent scales since 10 percent...

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