Problem
The productivity slowdown and saving. Consider a Ramsey-Cass-Koopmans economy that is on its balanced growth path, and suppose there is a permanent fall in g.
a) How, if at all, does this affect the k ?= 0 curve?
(b) How, if at all, does this affect the c ? = 0 curve?
(c) What happens to c at the time of the change?
(d) Find an expression for the impact of a marginal change ing on the fraction of output that is saved on the balanced growth path. Can one tell whether this expression is positive or negative?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.