The assignment questions are attached as well as lecture slides.
We were also given the following advice:
Question 1.b. To assess the dynamics of the debt-to-GDP ratio, say whether the rate of change of the debt-to-GDP ratio is positive or negative.
Question 1.c. Note that you only have 1 differential equation. Draw the phase diagram for positive values of both debt to GDP ratio and deficit to GDP ratio. It does not need to be the exact one. You can draw an approximate one by hand. To explain the dynamics, draw the arrows that say whether the debt to GDP ratio is increasing or decreasing.
Question 2.e. You need to draw the phase diagram with the locuses and the steady states, no need for the stable arm. Again it does not need to be the exact one, you can draw an approximate one by hand.
Quuestion 2.f. You need to explain whether capital and consumpton will be increasing or decreasing or constant after the war breaks in and towards which values they converge.
