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Homework Help: Write out the equations ∆Y and ∆X

  1. Jan 28, 2012 #1
    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:


    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.
  2. jcsd
  3. Jan 28, 2012 #2
    Solved. Thanks.
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