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reference information: overlapping generations model with money Overlapping Generations Model with Money Consider an economy where at time t there are N=75 old individuals and population grows at 20% per period. Individuals are endowed with 1=20 units when young and 2=12 when old. Assume that each individual's utility is given by U(c1,c2)=lnc1+ln c2 Finally, suppose that the old generation at time t have a total 500 units of fiat money.c. Solve tor steady state equilibrium (be complete). What would happen to equilibrium if the rate of growth of population changed (Be specific)? d. Derive the equilibrium law of motion for this economy. Graphically illustrate equilibrium. What are the dynamic equilibria in this case?.

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reference information: overlapping generations model with money Overlapping Generations Model with Money Consider an economy where at time t there are N=75 old individuals and population grows at 20% per period. Individuals are endowed with 1=20 units when young and 2=12 when old. Assume that each individual's utility is given by U(c1,c2)=lnc1+ln c2 Finally, suppose that the old generation at time t have a total 500 units of fiat money.c. Solve tor steady state equilibrium (be complete). What would happen to equilibrium if the rate of growth of population changed (Be specific)? d. Derive the equilibrium law of motion for this economy. Graphically illustrate equilibrium. What are the dynamic equilibria in this case?

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reference information overlapping generations model with mo.pdf

  • 1. reference information: overlapping generations model with money Overlapping Generations Model with Money Consider an economy where at time t there are N=75 old individuals and population grows at 20% per period. Individuals are endowed with 1=20 units when young and 2=12 when old. Assume that each individual's utility is given by U(c1,c2)=lnc1+ln c2 Finally, suppose that the old generation at time t have a total 500 units of fiat money.c. Solve tor steady state equilibrium (be complete). What would happen to equilibrium if the rate of growth of population changed (Be specific)? d. Derive the equilibrium law of motion for this economy. Graphically illustrate equilibrium. What are the dynamic equilibria in this case?