2. Consider the National Income model given by the following equations. Y-C- I-G, = 0 C-a-B(Y-T)...

 

Transcribed Image Text:

2. Consider the National Income model given by the following equations. Y-C- I-G, = 0 C-a-B(Y-T) = 0 T-Y-SY=0 where Y, C, and T are endogenous variables and I., Go, a, B, y, 8 are exogenous and 3 and 8 are positive fractions. Use Cramer's Rule to find the effect of a change in G, on Y and C. 2. Consider the National Income model given by the following equations. Y-C- I-G, = 0 C-a-B(Y-T) = 0 T-Y-SY=0 where Y, C, and T are endogenous variables and I., Go, a, B, y, 8 are exogenous and 3 and 8 are positive fractions. Use Cramer's Rule to find the effect of a change in G, on Y and C.

Answer rating: 100% (QA)

Using Cramers Rule to Find the Effects of a Change in G Step 1 Write the system of equations in matr... View the full answer