Investment at time n depends on the excess income over the previous year, as given by the difference equation In=3.3(YnYn1), while savings are 7% of income: Sn=0.07Yn. Suppose that in addition we have the equilibrium condition In=Sn. (a) Write the equilibrium condition as a difference equation in Yn. (b) Solve the difference equation, given Y2=1000. (c) With justification, determine whether prices will stabilize in the long run. Investment at time n depends on the excess income over the previous year, as given by the difference equation In=3.3(YnYn1), while savings are 7% of income: Sn=0.07Yn. Suppose that in addition we have the equilibrium condition In=Sn. (a) Write the equilibrium condition as a difference equation in Yn. (b) Solve the difference equation, given Y2=1000. (c) With justification, determine whether prices will stabilize in the long run