Solve for steady-state inflation rate, output level and expected inflation rate.

Consider the following model of a closed economy. I denotes the inflation rate, y denotes the output rate, and m is the growth of money stock. Treat a as exogenous. The superscript e refers to an expected value. The subscripts t and t - 1 refers to the respective time periods. Solve for steady-state inflation rate, output level and expected inflation rate. y1 = Vita(m - n, ) IT , = B ( V. - V) + 1, where: a, B, 1 > 0