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{"ops":[{"insert":"Consider the Harrod-Domar model given by the following equations\u00a0.\n\n"},{"attributes":{"bold":true},"insert":"S(t) = 0.3 Y(t)"},{"insert":"\n"},{"attributes":{"bold":true},"insert":"I(t) = \u1e30(t) = 0.7 \u1e8e (t)"},{"insert":"\n"},{"attributes":{"bold":true},"insert":"S(t) = I(t)"},{"insert":"\n\n"},{"attributes":{"bold":true,"code":true},"insert":"a)Write the significance of "},{"attributes":{"token":"keyword","bold":true,"code":true},"insert":"each"},{"attributes":{"bold":true,"code":true},"insert":" variable "},{"attributes":{"token":"keyword","bold":true,"code":true},"insert":"and"},{"attributes":{"code":true},"insert":" constant of the model.\u00a0"},{"insert":"\nb) Give the economic interpretation of the model.\n"},{"attributes":{"code":true},"insert":"c) If Y"},{"attributes":{"token":"number","script":"sub","code":true},"insert":"0"},{"attributes":{"code":true},"insert":" = "},{"attributes":{"token":"number","code":true},"insert":"100"},{"attributes":{"code":true},"insert":" m.u., compute the income, the savings "},{"attributes":{"token":"keyword","code":true},"insert":"and"},{"attributes":{"code":true},"insert":" the investment trajectories.\u00a0"},{"insert":"\nd) Determine the equilibrium points of these trajectories and analyze their stability.\n\n"}]}
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