Question

Find the time path
Yt-1= 0.8Yt

Answer 1

$Yt-1=0.8Yt$

$Yt -0.8Yt=1$

$0.2Yt=1$

$\frac{0.2Yt}{0.2}=\frac{1}{0.2}$

$Yt=5$