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Question: please explain and show me the process with answer thank...

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1 2 2. (A siulated economy) Let Y F(Kt, Lt) AK Lg. The discrete time version of the capital accumulation equation is given by Lo-1 and labor grows at a rate of n-0.01. A-1, Ko 0.01 and 0.07 a) Assume that s 0.2. Find the level of consumption in the economy in periods 1,2,3,4 and 100. b) Repeat the computations in (a) assuming s 0.3. c) Assume the economy is in a steady state and s0.3. Explain what happens to consumption over time after s increases to s 0.33. d) Do the same as in part (c) but assuming that s increases to s 0.5.

Please explain and show me the process with answer. Thank you!

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