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Question: d make a graph of the curve inkt with time...

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d) Make a graph of the curve In(Kt) with time on the x-axis. Carefully show the shape and label the slope of this curve. 2. (A simulated economy) Let Yǐ = F(Kt, Lt) = AK capital accumulation equation is given by The discrete time version of the L,-1 and labor grows at a rate of n-001. A = 1, Ko = 0.01 and 0.07. a) A and 100. ssume that s 0.2. Find the level of consumption in the economy in periods 1,2,3,4 b) Repeat the computations in (a) assuming s 0.3. c) Assume the economy is in a steady state and s consumption over time after s increases to s 0.3. Explain what happens to 0.33. d) Do the same as in part (c) but assuming that s increases to 8-05. 3. (Steady state in the Solow model) Consider two economies identical in everything except the production function. Economy 1 has a production function F(K, L)- KOLi-a, economy 2 has a production function G(K, L) aK + (1- a)L. For both economies capital grows
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