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4. Consider the following lagged income determination model: Ct = 90+ 0.8Yt-1; It = 50 vt; Yo = 1200. In equilibrium, Y = Ct+It

4. Consider the following lagged income determination model: Ct = 90+ 0.8Yt-1; It = 50 vt; Yo = 1200. In equilibrium, Y = Ct+It akin to the development in this Lesson's practice problems with solutions. (a) Find the time path of national income Y. (b) Characterize the stability of the time path obtained in part (a).

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