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Consider the following homogenous difference equation: xt=b0+b1xt-1
a) Iterate backwards xt can be written in terms of xt-2.
b) Now show xt can be written in terms of xt-3 and xt-4, respectively.
c) Assuming that you know a particular value of x in the past %u2013 x0 %u2013 write down the solution for xt in terms of x0. bra
d) One of your colleagues obtained a different solution using a different method: xt=b0/(1-b1)+bt1[x0-b0/(1-b1)]
Demonstrate using alegbra that the two solutions are identical if I b1 I < 1.
e) Show that if b1 = 1, the solution in (c) is equivalent to xt = b0*t + x0. How do you interpret the behavior of x in this case? How does the behavior of x differ from the case in (d), when | b1 |< 1?
According to the imperfect-information model, when the price level is greater than the expected price level, output will _____ the natural level of output A) be greater than
Effects of consumption function.
The annual income from an apartment complex is $20,664. The annual expense is estimated to be $3,414. The apartment complex could be sold for $146,499 at the end of 10 years. If yo
Aggregate supply and the AS curve The AS curve is the aggregate supply as a function of P. It is horizontal when thesupply is low and upward sloping when the s
SUppose nominal GDP increases from 5.8 trillion to 6 trillion. The GDP deflator rose over that same year by 3.9 percent. By what percent does the real output increase?
what is money multiplier? what is role , importance, advantages , disadvantages , limitations and examples of money multiplier?
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hi I just found an interesting problem on your page,(wood investments ... Mutch PLC) I would like to see the answer Could you please give me a quote for the answer?
Illustrates about the terms of elasticity? • Definition of elasticity a. Price elasticity of demand b. Income elasticity of demand and c. Price elasticity of supply
long run supply curve
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