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X: X X X: Practice Problems

The document contains 14 practice problems involving difference equations. The problems cover finding solutions to linear and nonlinear difference equations, analyzing the stability of systems, constructing phase diagrams, and determining equilibrium points and stability for various nonlinear equations.

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erekle shubitidze
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221 views4 pages

X: X X X: Practice Problems

The document contains 14 practice problems involving difference equations. The problems cover finding solutions to linear and nonlinear difference equations, analyzing the stability of systems, constructing phase diagrams, and determining equilibrium points and stability for various nonlinear equations.

Uploaded by

erekle shubitidze
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Practice Problems

1. Find the solutions of the following difference equations with the given values of x0 :
a) xt 1  3xt  4, x0  1 .

b) 3xt 1  2 xt  1, x0  2 .

c) 3xt 1  4 xt  3  0, x0  1 .

d) xt 1  xt  6, x0  6 .

e) xt 1  7 xt  6, x0  1 .

f) 4 xt 1  7 xt  4  0, x0  1 .

1
g) xt 1   xt  6, x0  0 .
2

h) xt 1  2 xt  9, x0  4 .

2. Consider the following supply and demand equations:

Qs ,t  4 pt 1  10 ,

Qd ,t  5 pt  35

Assuming that the market is in equilibrium, find expressions for pt and Qt when p0  6 . Is
the system stable or unstable?

3. Consider the supply and demand equations

Qs ,t  pt 1  8 ,
Qd ,t  2 pt  22 .

Assuming equilibrium, find expressions for pt and Qt when p0  11 . Is the system stable or
unstable?
4. Consider a two-sector model:
i) Yt  Ct  I t ii) Yt  Ct  I t
Ct  0.8Yt 1  100 Ct  0.9Yt 1  250
I t  200 I t  350

1
Find an expression for Yt when
a) Y0  1700 b) Y0  6500 . Is the system stable or unstable?
5. Consider the two-sector model:

i) Yt  Ct  I t ii) Yt  Ct  I t
Ct  0.7Yt 1  400 Ct  0.6Yt 1  200
I t  0.1Yt 1  100 I t  0.2Yt 1  100

Given that Y0  3000 , find an expression for Yt . Is the system stable or unstable?
6. Solve the difference equation Yt 1  0.2Yt  0.8t  4

with the initial condition Y0  10 .

7. Consider the difference equation

Yt  0.1Yt 1  6  0.6  .
t

a) Find the solution of the corresponding homogeneous equations.


b) Find the particular solution using the substitution Yt  a  0.6  .
t

c) Find the general solution that satisfies the initial condition Y0  9 .


d) Is the general solution stable or unstable?

8. Consider the income determination model

Ct 1  200  0.75Yt ,
I t 1  50  0.15Yt ,
Y0  3000.

a) Find the time path of national income Yt

b) Check your answer, using t=0, t=1

c) Comment on the stability of the time path

9. The Harrod-Domar model of the growth of an economy is based on three assumptions:

a) Savings St in any time period is proportional to income Yt , so that St   Yt ,   0 .

2
b) Investment It in any time period is proportional to the change in income from the
previous period to the current period so that I t   Yt  Yt 1  ,   0 .

c) Investment and savings are equal in any period so that I t  St . Show that Yt  Y
   t 1
and find a formula for Yt in terms of Y0 . Consider the case when   0.1 . and   1.4 .
Discuss that stability and find expressions for Stand It in terms of Y0 .

10. a) Construct a phase diagram for the non linear first-order difference equation

xt 1  xt3 .

a) Use it to test for dynamic stability

b) Confirm your results with the derivative test

11. a) Construct a phase diagram for the non linear first-order difference equation

1
xt 1  .
4 x
t

b) Use it to test for dynamic stability

c) Confirm your results with the derivative test

12. a) Construct a phase diagram for the non linear first-order difference equation

1
xt 1  .
xt3

b) Use it to test for dynamic stability.

c) Confirm your results with the derivative test.

13. find the equilibrium points and determine their stability for the equation

6
x(t  1)  5  .
x(t )
14. find the equilibrium points and determine their stability for the equation
a) x(t  1)   x(t ) 2  x(t ), t  0,1, ,

3
3
b) x(t  1)  1  x(t ) 2 , t  0,1, ,
4

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