Question: (i) Show that the linear approximation to the q = 0 isocline in the TobinBlanchard model is q = q b1m0u (ky

(i) Show that the linear approximation to the q˙ = 0 isocline in the Tobin–Blanchard model is q = q∗ −

b1m0u

(ky∗ − m0)2

(y − y∗)

(ii) In example 10.8 show that the equation for the linear approximation to q˙ = 0 at (y∗, q∗) is q = 7.23352 − 0.181008y while the equation for the saddle path is q = 6.64988 − 0.164683y

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