Economic
Model With Investment
The dynamical system
represents
an economic model of a national economy in which the investment
is given by and
is a parameter.
By choosing a and b
appropriately show that for the case ,
can be written
in the form
Hence show that except on the
line
.
(Hint: this can be done easily by plotting a graph. Try
proving it analytically).
the
origin is an unstable focus surrounded by a stable limit cycle
whose size increases as r is increased.