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Linear algebra 1. Real business cycles: Consider the macroeconomic model for real business cycles taken from Dejong and Dave (2011) Chapter 3. In your last

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Linear algebra 1. Real business cycles: Consider the macroeconomic model for real business cycles taken from Dejong and Dave (2011) Chapter 3. In your last problem set you derived the nonlinear system: 1-90 =(1-0)4 1 = zhanl-a 1 =m, th K=it(1-561 1 - 10 In q = (1 -p) In>+ ping_te Your job is to log-linearize the above system around the steady state using first-order taylor series approxima- tions to find a model in the form

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