Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz

Exercise 12

Now suppose we have a one-sector model with a variable rate of population growth. ( Hint: See Figure 4-3.)
a. What does the investment requirement line look like for this model
b. Characterize the set of equilibria, being sure to discuss their stability or lack thereof. Does output in any of these equilibria have nonzero per capita growth
c. Suppose your country is in a "poverty trap"-at the equilibrium with the very lowest level of output per person. What could the country do to move toward a point with higher income