Question

For each of the following scenarios, use the graph for the Malthusian model in the (w,L) space to illustrate what happens to a country's population size and the real wage in the short run and in the long run. In addition, for each of the scenarios draw graphs showing dynamics of both w and L over time.

a. Scientists discover a new strain of wheat that can produce twice as much grain per acre.

b. A volcanic eruption kills half the people and destroys half the land.

Answer 1