1. Dealing with a non-linear dynamic system: Consider the following non-linear dynamic system: 14+1 = ar +1 (1) where a, a (0,1). (a) Drive the steady state of (1) and loglinearize the system around it. (b) Compute the solution for your loglinearized system. (c) Is the steady state stable? Why? (a) Compute the speed of adjustment or convergence based on the loglinearized sys- tem. 1. Dealing with a non-linear dynamic system: Consider the following non-linear dynamic system: 14+1 = ar +1 (1) where a, a (0,1). (a) Drive the steady state of (1) and loglinearize the system around it. (b) Compute the solution for your loglinearized system. (c) Is the steady state stable? Why? (a) Compute the speed of adjustment or convergence based on the loglinearized sys- tem