Figure 4 The vertical axis of the line...

Figure 4

A line graph compares growth rate trends for two economies with varying technology complexity and learning rates.

The vertical axis of the line graph is labeled “Growth Rate,” and ranges from negative 0.07 to 0.02 in increments of 0.01. The horizontal axis is labeled “Period,” and ranges from 0 to 50 in increments of 5. Two lines are shown on the graph. A legend at the bottom indicated that the solid line represents “Economy 1,” and the dashed line represents “Economy 2.” The line for “Economy 1” starts at (0, negative 0.055), increases with a concave down nature to (25, 0.013), and stays almost constant to end at (50, 0.015). The line for “Economy 2” starts at (0, negative 0.058), increases with a concave down nature to (15, 0.009), and stays almost constant to end at (50, 0.010). The lines intersect at (16.7, 0.009). Note: All the numerical values are approximated.

Consumption and capital growth rate for Economy 1 and Economy 2. Parameters: Economy 1: $q_{1} = 0.26$ ⁠; $λ = 0.15 .$ Economy 2: $q_{2} = 0.265 and$ $λ = 0.28 .$ Source: Simulated data

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