PEB 2015, Q7 and Q8. Amit sir help !!

[Akshay Jain]

[Rob]

hi akshay
 plzz hlp mee in this ques

[Akshay Jain]

Note: I am not 100% sure about my arguements here.... But u can get an idea of how to approach such questions....:)

[Rob]

tthnks akshay for d instant help

[L]

Akshay, if you see the output per capita eqn, it passes through origin. So, savings (or investment) curve should through origin too. Also, (delta + n) line should be actually (delta + n) k which will be passing through origin. and therefore the number of equilibiria will be 4 with only 1 stable.  

[Amit Goyal]

Solution to Q 7 is here:
ISI_-_2015_Ans_7.png