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Homework Statement
If I am given a couple of equations asking to write out the equations for which ∆Yt=∆Xt=0:
∆Yt=–0.5(Yt–Y*)+0.3(Xt–X*)
∆Xt=0.4(Yt–Y*)–0.3(Xt–X*)
It is also known that Yt and Xt are endogenous and Y* and X* are steady-state values (if this helps).
Any hints on how to proceed?
I started with this:
–0.5(Yt–Y*)+0.3(Xt–X*) = 0
0.4(Yt–Y*)–0.3(Xt–X*) = 0
I just don't know what to do with extra Y* and X*. Any help is greatly appreciated.