[solved]-Microsoft Word Assignment 2 Fall 2016 Doc Microsoft Word Assignment 2 Fall 2

Microsoft Word – Assignment 2 (Fall 2016).docMicrosoft Word – Assignment 2 (Fall 2016).doc

1. Suppose that Yt=  AKtalpha Lt1-alpha In addition, assume that the population is constant, Lt=  L for all t, and that the savings rate, s, is constant. Let kt= Kt / Lt.
   1. Derive a difference equation expressing kt+1 as a function of kt . Draw a graph of this equation.

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