diff --git a/exercise07.cpp b/exercise07.cpp
new file mode 100644
index 0000000..3552102
--- /dev/null
+++ b/exercise07.cpp
@@ -0,0 +1,163 @@
+
+#include <iostream>
+#include <gsl/gsl_vector.h>
+#include <gsl/gsl_multiroots.h>
+
+using namespace std;
+
+struct model_params{
+    double alpha;
+    double beta;
+    double delta;
+    double theta;
+    double g;
+};
+
+int model_f (const gsl_vector * x, void *params, 
+              gsl_vector * f){
+    double alpha = ((struct model_params *) params) -> alpha;
+    double beta = ((struct model_params *) params) -> beta;
+    double delta = ((struct model_params *) params) -> delta;
+    double theta = ((struct model_params *) params) -> theta;
+    double g = ((struct model_params *) params) -> g;
+  
+    const double H = gsl_vector_get (x, 0);
+    const double K = gsl_vector_get (x, 1);
+  
+    const double y0 = theta*(pow(K, 1-alpha)*pow(H, alpha)+(1-delta)*K-(1-g)*K)/(1-H)-alpha*pow(K, 1-alpha)*pow(H, alpha-1);
+    const double y1 = beta/(1+g)*((1-alpha)*pow(K, -alpha)*pow(H, alpha)+1-delta)-1;
+  
+    gsl_vector_set (f, 0, y0);
+    gsl_vector_set (f, 1, y1);
+  
+    return GSL_SUCCESS;
+}
+
+
+int print_state (size_t iter, gsl_multiroot_fsolver * s){
+    cout << "iter = " << iter << 
+          " x = " << 
+          gsl_vector_get (s->x, 0) << ", " <<
+          gsl_vector_get (s->x, 1) << ", " <<
+          "f(x) = " <<
+          gsl_vector_get (s->f, 0) << ", " <<
+          gsl_vector_get (s->f, 1) << endl;
+}
+
+double compute_Y(const double alpha = 0.667, const double beta = 0.984,
+                 const double delta = 0.025, const double theta = 3.48,
+                 const double g = 0.04){
+
+    const gsl_multiroot_fsolver_type *T;
+    gsl_multiroot_fsolver *s;
+  
+    int status;
+    size_t i, iter = 0;
+  
+    const size_t n = 2;
+    struct model_params  p = {alpha, beta, delta, theta, g};
+    gsl_multiroot_function f = {&model_f, n, &p};
+
+    double x_init[2] = {0.1, 1.5};
+    gsl_vector *x = gsl_vector_alloc (n);
+
+    gsl_vector_set (x, 0, x_init[0]);
+    gsl_vector_set (x, 1, x_init[1]);
+
+    T = gsl_multiroot_fsolver_hybrids;
+    s = gsl_multiroot_fsolver_alloc (T, 2);
+    gsl_multiroot_fsolver_set (s, &f, x);
+
+    
+    do{
+        iter++;
+        status = gsl_multiroot_fsolver_iterate (s);
+
+    
+        if (status)   /* check if solver is stuck */
+            break;
+
+        status = gsl_multiroot_test_residual (s->f, 1e-7);
+    }
+    while (status == GSL_CONTINUE && iter < 1000);
+
+    
+    const double H = gsl_vector_get (s->x, 0); 
+    const double K = gsl_vector_get (s->x, 1);
+
+    gsl_multiroot_fsolver_free (s);
+    gsl_vector_free (x);
+
+    // b.
+    const double Y = pow(K, 1-alpha)*pow(H, alpha);
+
+    return Y;
+
+}
+
+int main (void){
+
+    // a.
+    const gsl_multiroot_fsolver_type *T;
+    gsl_multiroot_fsolver *s;
+  
+    int status;
+    size_t i, iter = 0;
+  
+    const size_t n = 2;
+    const double alpha = 0.667;
+    const double beta = 0.984;
+    const double delta = 0.025;
+    const double theta = 3.48;
+    const double g = 0.04;
+    struct model_params  p = {alpha, beta, delta, theta, g};
+    gsl_multiroot_function f = {&model_f, n, &p};
+
+    double x_init[2] = {0.1, 1.5};
+    gsl_vector *x = gsl_vector_alloc (n);
+
+    gsl_vector_set (x, 0, x_init[0]);
+    gsl_vector_set (x, 1, x_init[1]);
+
+    T = gsl_multiroot_fsolver_hybrids;
+    s = gsl_multiroot_fsolver_alloc (T, 2);
+    gsl_multiroot_fsolver_set (s, &f, x);
+
+    print_state (iter, s);
+
+    do{
+        iter++;
+        status = gsl_multiroot_fsolver_iterate (s);
+
+        print_state (iter, s);
+
+        if (status)   /* check if solver is stuck */
+            break;
+
+        status = gsl_multiroot_test_residual (s->f, 1e-7);
+    }
+    while (status == GSL_CONTINUE && iter < 1000);
+
+    cout << "status = " << gsl_strerror (status) << endl;
+
+    const double H = gsl_vector_get (s->x, 0); 
+    const double K = gsl_vector_get (s->x, 1);
+    const double C = pow(K, 1-alpha)*pow(H, alpha)+(1-delta)*K-(1-g)*K;
+
+    gsl_multiroot_fsolver_free (s);
+    gsl_vector_free (x);
+
+    cout << "--- RESULT ---" << endl;
+    cout << "C = " << C << endl;
+    cout << "H = " << H << endl;
+    cout << "K = " << K << endl;
+
+    // b.
+    cout << "let's see how alpha affects steady state output" << endl;
+    const double Y_high_alpha = compute_Y(0.7);
+    const double Y_low_alpha = compute_Y(0.6);
+    cout << "Y with alpha = 0.7 is " << Y_high_alpha << endl;
+    cout << "Y with alpha = 0.6 is " << Y_low_alpha << endl;
+
+    return 0;
+}