ECON 410 · Intermediate Macroeconomics · Section 6 · Student Lab

The Solow model in five steps

Work through the steps in order. In each one, move a slider or press a button and watch what happens.
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What this diagram shows
The production functionoutput per worker, y = f(k)
The Solow diagraminvestment vs. break-even, and the steady state
The economy over timecapital climbing toward its steady state
Saving and the steady statethe Golden Rule
Two economieswhy steady states differ
The numbers behind the picture
Where we end up