Question: ( 5 points ) Consider the recursion u _ ( t ) = 3 u _ ( t - 1 ) - b . (

(5 points) Consider the recursion u_(t)=3u_(t-1)-b .(a) Find the value of b such that the equilibrium solution of this recursion is hat(u)=500.(b) Using the value of b you found in question (a), make a change of variables and show how this change transforms the affine geometric recursion u_(t)=3u_(t-1)-b to a geometric recursion of the form v_(t)=\lambda v_(t-1).

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