CHAPTER 15

Exercise 15.1

12
1. (a) With a = 4 and b = 12, we have yc = Ae4t , yp = 4 = 3. The general solution is
y(t) = Ae4t + 3. Setting t = 0, we get y(0) = A + 3, thus A = Y (0) 3 = 2 3 = 1.
The definite solution is y(t) = e4t + 3.
0
(b) yc = Ae(2)t , yp = 2 = 0. The general solution is y(t) = Ae2t . Setting t = 0, we
have y(0) = A; i.e., A = 9. Thus the definite solution is y(t) = 9e2t .
15
(c) yc = Ae10t , yp = 10 = 32 . Thus y(t) = Ae10t + 32 . Setting t = 0, we get y(0) = A + 32 ,
3 3
i.e., A = y(0) 2 =0 = 32 .
2

The definite solution is y(t) = 32 1 e10t .
dy
(d) Upon dividing through by 2, we get the equation dt + 2y = 3. Hence yc = Ae2t ,
3
yp = 2, and y(t) = Ae2t + 32 . Setting t = 0, we get y(0) = A + 32 , implying that
3
A = y(0) 2 = 0. The definite solution is y(t) = 32 .

3. (a) y(t) = (0 4)et + 4 = 4 (1 et )

(b) y(t) = 1 + 23t

(c) y(t) = (6 0) e5t + 0 = 6e5t

(d) y(t) = 4 23 e3t + 23 = 3 13 e3t + 2
3

(e) y(t) = [7 (1)] e7t + (1) = 8e7t 1

(f) After dividing by 3 throughout, we find the solution to be

y(t) = 0 56 e2t + 56 = 56 1 e2t

Exercise 15.2

1. The D curve should be steeper then the S curve. This means that | | > ||, or < ,
which is precisely the criterion for dynamic stability.

99
 dP
2. From (15.9), we may write + = ( + ) P . Hence (15.100 ) can be rewritten as dt +
dP dP
j ( + ) P = j ( + ) P , or dt + kP = kP , or dt + k (P P ) = 0. By (15.30 ), the time
path corresponding to this homogeneous dierential equation is (t) = (0)ekt . If (0) = 0
, then (t) = 0; i.e., P (t) = P . If (0) 6= 0, then (t) P (t) P will converge to zero if
and only if k > 0. This conclusion is no dierent from the one stated in the text.

3. The price adjustment equation (15.10) is what introduces a derivative (pattern of change) into
the model, thereby generating a dierential equation.

4.

dP
(a) By substitution, we have dt = j (Qd Qs ) = j ( + ) j ( + ) P + j dP
dt . This can

be simplified to
dP j(+) j(+)
dt + 1j P = 1j (1 j 6= 0)
The general solution is, by (15.5),
h i
P (t) = A exp j(+)
1j t + +
+

dP
(b) Since dt= 0 i Qd = Qs , then the intertemporal equilibrium price is the same as the

market-clearing equilibrium price = +
+ .

(c) Condition for dynamic stability: 1 j > 0, or < 1j .

5.

(a) Setting Qd = Qs , and simplifying, we have

dP +
dt + P =

The general solution is, by (15.5),

P (t) = A exp + t + +

(b) Since - +
is negative, the exponential term tends to zero, as t tends to infinity. The

intertemporal equilibrium is dynamically stable.

(c) Although there lacks a dynamic adjustment mechanism for price, the demand function
dP
contains a dt term. This gives rise to a dierential equation and makes the model
dynamic.

100
Exercise 15.3

We shall omit all constants of integration in this Exercise.

R
1. Since u = 5, w = 15, and u dt = 5t, solution formula (15.15) gives
R
y(t) = e5t A + 15e5t dt = e5t A + 3e5t = Ae5t + 3

The same result can be obtained also by using formula (15.5).

R 2
2. Since u = 2t, w = 0, and u dt = t2 , solution formula (15.14) gives us y(t) = Aet .
R
3. Since u = 2t, w = t, and u dt = t2 , formula (15.15) yields
2
R 2 2
2
2
y(t) = et A + tet dt = et A + 12 et = Aet + 1
2

Setting t = 0, we find y(0) = A + 12 ; i.e., A = y(0) 1

2 = 1. Thus the definite solution is
2
y(t) = et + 12 .
R 3
4. Since u = t2 , w = 5t2 , and u dt = t3 , formula (15.15) gives us
t3
R t3
t3
t3
t3
y(t) = e 3 A + 5t2 e 3 dt = e 3 A + 5e 3 = Ae 3 + 5

Setting t = 0, we find y(0) = A + 5; thus A = y(0) 5 = 1. The definite solution is

3
t3
y(t) = e + 5.

dy
R
5. Dividing through by 2, we get dt + 6y = et . Now with u = 6, w = et , and u dt = 6t,
formula (15.15) gives us
R
y(t) = e6t A + et e6t dt = e6t A 17 e7t = Ae6t 17 et

Setting t = 0, we find y(0) = A 17 ; i.e., A = y(0) + 1

7 = 1. The definite solution is
y(t) = e6t 17 et
R
6. Since u = 1, w = t, and u dt = t, the general solution is
R
y(t) = et A + tet dt

= et [A + et (t 1)] [by Example 17, Section 14.2]

= Aet + t 1

101
Exercise 15.4

1. (a) With M = 2yt3 and N = 3y 2 t2 , we have M 2

t = 6yt =
N
y .
R
Step i: F (y, t) = 2yt3 dy + (t) = y 2 t3 + (t)
Step ii: F
t= 3y 2 t2 + 0 (t) = N = 3y 2 t2 ; thus 0 (t) = 0
R
Step iii: (t) = 0 dt = k
Step iv: F (y, t) = y 2 t3 + k, so the general solution is
1
y 2 t3 = c or y(t) = tc3 2

(b) With M = 3y 2 t and N = y 3 + 2t, we have M 2

t = 3y =
N
y .
R
Step i: F (y, t) = 3y 2 t dy + (t) = y 3 t + (t)
Step ii: F
t= y 3 + 0 (t) = N = y 3 + 2t; thus 0 (t) = 2t
R
Step iii: (t) = 2t dt = t2 [constant omitted]
Step iv: F (y, t) = y 3 t + t2 , so the general solution is
2 13
y 3 t + t2 = c or y(t) = ct t

(c) With M = t (1 + 2y) and N = y(1 + y), we have M t = 1 + 2y =

N
y .
R
Step i: F (y, t) = t(1 + 2y)dy + (t) = yt + y 2 t + (t)
Step ii: F
t= y + y 2 + 0 (t) = N = y(1 + y); thus 0 (t) = 0
R
Step iii: (t) = 0 dt = k
Step iv: F (y, t) = yt + y 2 t + k, so the general solution is
yt + y 2 t = c

(d) The equation can be rewritten as 4y 3 t2 dy + 2y 4 t + 3t2 dt = 0, with M = 4y 3 t2 and
N = 2y 4 t + 3t2 , so that M 3 N
t = 8y t = y .
R
Step i: F (y, t) = 4y 3 t2 dy + (t) = y 4 t2 + (t)
Step ii: F
t= 2y 4 t + 0 (t) = N = 2y 4 t + 3t2 ; thus 0 (t) = 3t2
R
Step iii: (t) = 3t2 dt = t3 [constant omitted]
Step iv: F (y, t) = y 4 t2 + t3 , so the general solution is
3 14
y 4 t2 + t3 = c or y(t) = ct t2

2.

102
 (a) Inexact; y is an integrating factor.

(b) Inexact; t is an integrating factor.

R
3. Step i: F (y, t) = M dy + (t)
R R
Step ii: F
t = M dy + 0 (t) = N ; thus 0 (t) = N t

t

M dy
R
R R R
R
Step iii: (t) = N t M dy dt = N dt t M dy dt
R R R R
Step iv: F (y, t) = M dy + N dt t M dy dt

Setting F (y, t) = c, we obtain the desired result.

Exercise 15.5

1. (a) i. Separable; we can write the equation as y2 dy + 2t dt = 0.

dy
ii. Rewritten as dt + 1t y = 0, the equation is linear.

(b)

i. Separable; multiplying by (y + t), we get y dy + 2t dt = 0.

dy
ii. Rewritten as dt = 2ty 1 , the equation is a Bernoulli equation with R = 0, T = 2t
and m = 1. Define z = y 1m = y 2 . Then we can obtain from (15.240) a linearized
equation
dz
dz 2(2)t dt = 0 or dt + 4t = 0

(c)

i. Separable; we can write the equation as y dy + t dt = 0.

ii. Reducible; it is a Bernoulli equation with R = 0, T = t, and m = 1.

(d)
1
i. Separable; we can write the equation as 3y2 dy t dt = 0
ii. Yes; it is a Bernoulli equation with R = 0, T = 3t, m = 2.

2.

(a) Integrating y2 dy + 2t dt = 0 after cancelling the common factor 2, we get ln y + ln t = c, or

ln yt = c. The solution is
k
yt = ec = k or y(t) = t
dy
Check: dt = kt2 = yt (consistent with the given equation).

103
 1
(b) Cancelling the common factor y+t , and integrating we get 12 y 2 +t2 = c. Thus the solution
is
1 1
y(t) = 2c 2t2 2 = k 2t2 2
1
2 2
Check: dy
dt = 1
2 k 2t (4t) = 2t
y (which is equivalent to the given dierential
equation).

3. Integrating y dy + t dt = 0, we get 12 y 2 + 12 t2 = c, or y 2 + t2 = 2c = A. Thus the solution

1
is y(t) = A t2 2 . Treating it as a Bernoulli equation with R = 0, T = t, m = 1, and
z = y 1m = y 2 , we can use formula (15.240) to obtain the linearized equation dz + 2t dt = 0,
dz
or dt = 2t, which has the solution z = A t2 . Reverse substitution then yields the identical
answer
1
y 2 = A t2 or y(t) = A t2 2

1 2
4. Integrating 3y dy t dt = 0, we obtain 13 y 1 12 t2 = c, or y 1 = 3c 32 t2 = A 32 t2 .
1
The solution is y(t) = A 32 t2
.

Treating it as a Bernoulli equation, on the other hand, we have R = 0, T = 3t, and m = 2.

dz
Thus we can write dz + 3t dt = 0, or dt = 3t, which has the solution z = A 32 t2 . Since
z = y 1m = y 1 , we have y(t) = z1 , which represents an identical solution.

dz
5. The derivative of the solution is dt = 2At + 2. The linearized equation itself implies on
dz 2z
the other hand that dt = t 2. But since z = At2 + 2t, the latter result amounts to
2 (At + 2) 2 = 2At + 2. Thus the two results are identical.

Exercise 15.6

1. (a) and (d): The phase line is upward-sloping, and the equilibrium is accordingly dynamically
unstable.

(b) and (c): The phase line is downward-sloping, and the equilibrium is dynamically stable.

2.

104
 (a) The phase line is upward-sloping for nonnegative y; the equilibrium y = 3 is dynamically
unstable.
1 1

(b) The phase line slopes upward from the point of origin, reaches a peak at the point 4 , 16 ,
and then slopes downward thereafter. There are two equilibriums, y = 0 and y = 12 ; the
former is dynamically unstable, but the latter is dynamically stable.

3.

(a) An equilibrium can occur only when dy

dt = 0, i.e., only when y = 3, or y = 5.

2 when y = 3
d dy
(b) dy dt = 2y 8 =
+2 when y = 5
Since this derivative measures the slope of the phase line, we can infer that the equilibrium
at y = 3 is dynamically stable, but the equilibrium at y = 5 is dynamically unstable.

Exercise 15.7

1. Upon dividing by k throughout, the equation becomes

k s (k)
=
k k
sQ sQ K
Since the first term on the right is equal to K
L
= K = K, the equation above means
L
K
that:growth rate of L = growth rate of K growth rate of L

dK d t
2. I dt = dt Ae = Aet = Bet . Thus net investment, I, obviously also grows at the rate
.

3. The assumption of linear homogeneity (constant returns to scale) is what enables us to focus
on the capital-labor ratio.

4.

(a) There is a single equilibrium y which lies between 1 and 3, and is dynamically stable.

105
(b) There are two equilibriums: y1 (negative) is dynamically stable, and y2 (positive) is
dynamically unstable.

106
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