1. ## Some simplifying help.

Are you able to help me to simplify this?

$\displaystyle \Pi_t = 0.5 \Pi_t + 0.5 \Pi_{t-1} - 1.5(u_t-u_n)$

Im finding it quite difficult, what i have so far is this.

$\displaystyle 0.5\Pi_t=0.5\Pi_{t-1}-1.5(u_t-u_n)$

Im not sure if thats right. I need it in terms of $\displaystyle \Pi_t$
Preferably in a full unit of it.

Thanks.

2. Originally Posted by el123
Are you able to help me to simplify this?

$\displaystyle \Pi_t = 0.5 \Pi_t + 0.5 \Pi_{t-1} - 1.5(u_t-u_n)$

...I need it in terms of $\displaystyle \Pi_t$ Preferably in a full unit of it.
What information do you have for $\displaystyle \Pi_t$, $\displaystyle \Pi_{t-1}$, $\displaystyle u_t$, and $\displaystyle u_n$? What is meant by "a full unit of" $\displaystyle \Pi_t$?

Thank you!