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Home » C) Cause a movement along the curve due to price level changes - Databee Business Systems

C) Cause a movement along the curve due to price level changes - Databee Business Systems

📅 February 26, 2026 👤 scraface

Feb 26, 2026

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Solution: We are given a recursive sequence defined by \( b_{n+1} = G(...
Let \( L = \lim_{n o \infty} b_n \). Since \( b_{n+1} = G(b_n) \), ta...
L = G(L) = L - rac{L^2}{4}
Subtracting \( L \) from both sides:
= -rac{L^2}{4}
rac{L^2}{4} = 0 \Rightarrow L^2 = 0 \Rightarrow L = 0
We now verify that the sequence converges to 0. Note that \( G(t) = t(...
\lim_{n o \infty} b_n = 0

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