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Problem 1. Consider the figure below illustrating the actual and requircd investments per capita.
a. How many nom-trivial steady-atates exist in the econousy above? Pinpoint and label the
steady states om the figuro. (10 points) b. Discuss the local stability properties of each steady-
state. Is any of the steady-states in a poverty trap? If so explain. ( 15 points) c. What does it mean
for a steady-state to be unstable (a.k.a, a source)? Explain (15 points) investamate jot rapilin. ant
laleit the straty-etatew ce the fear (1e pedins) 1 Boptwih u (is pedats)

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Problem 1- Consider the figure below illustrating the actual and requi.pdf

  • 1. Problem 1. Consider the figure below illustrating the actual and requircd investments per capita. a. How many nom-trivial steady-atates exist in the econousy above? Pinpoint and label the steady states om the figuro. (10 points) b. Discuss the local stability properties of each steady- state. Is any of the steady-states in a poverty trap? If so explain. ( 15 points) c. What does it mean for a steady-state to be unstable (a.k.a, a source)? Explain (15 points) investamate jot rapilin. ant laleit the straty-etatew ce the fear (1e pedins) 1 Boptwih u (is pedats)