are 42=0.5+√(0.5)2-4(0.8) 0.25+0.86 5-√(0.5)2-4(08) 2 =0.25-0.861, with modulus R=√(0.25)2+(0.86)2=0.9 Since R 1, the dynamic multiplier follows a pattern of damped oscillation as plotted in panel(b)of Figure 1.4 of Hamilton, p. 15 2.2 General Solution of a pth-order Difference Equation with Repeated Eigenvalues Jordan decompositionwhich are λ1 = 0.5 + p (0.5)2 − 4(0.8) 2 = 0.25 + 0.86i λ2 = 0.5 − p (0.5)2 − 4(0.8) 2 = 0.25 − 0.86i, with modulus R = p (0.25)2 + (0.86)2 = 0.9. Since R < 1, the dynamic multiplier follows a pattern of damped oscillation as plotted in panel (b) of Figure 1.4 of Hamilton, p. 15. 2.2 General Solution of a pth-order Difference Equation with Repeated Eigenvalues Jordan decomposition 12