Question: 2. Given the following Macro Model Y = C + I + G 0 C = a + b Y I = k + m

2. Given the following Macro Model

Y=C+I+G0C=a+bYI=k+mY

(i) Solve the system for its endogenous variables by the substitution method (Y,C,I) and specify the government spending multiplier. (ii) Write the system in the matrix form AX=B and solve by the matrix inverse method. (iii) Solve the system by Cramers rule.

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