1. The problem statement, all variables and given/known data 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.