7. (10%) In an economy different economic equations are found as follows: 2C+31+ G = 10...

 

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7. (10%) In an economy different economic equations are found as follows: 2C+31+ G = 10 C-1+G 4C-1-5G = -8 (4%) Show that this system has a unique solution without actually solving it. (6%) Suppose (C", I, G) is the solution of this system. When the value of a increase, will G* increase or decrease? (Hint: Use Cramer's rule) a. b. 7. (10%) In an economy different economic equations are found as follows: 2C+31+ G = 10 C-1+G 4C-1-5G = -8 (4%) Show that this system has a unique solution without actually solving it. (6%) Suppose (C", I, G) is the solution of this system. When the value of a increase, will G* increase or decrease? (Hint: Use Cramer's rule) a. b.

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a For the system to have a unique solution the number of equations must equal the number of unknowns ... View the full answer