Abstract

In this particular paper we firstly deal with Samuelson’s model of national economy. We create a difference equation which reflects Samuelson’s model for the national income of a country taking into consideration the expenditure and the investments of the two previous years and not only the immediately previous one. Later we find the saddle-point and deal with its stability giving conditions concerning the coefficient of the difference equation and which are able (sufficient) and necessary in order for the saddle-point to be stable.

This work is licensed under a Creative Commons Attribution 4.0 License.