Question: Can you find me the solution to this question please? 1. Consider the four-sector macroeconomic model: Y =C+1+G+X-M C = aYa + b (0 0)

Can you find me the solution to this question please?

Can you find me the solution to this question please? 1. Consider

1. Consider the four-sector macroeconomic model: Y =C+1+G+X-M C = aYa + b (0 0) Yo = Y -T T = tY + T* (0 0 ) (1* > 0) G = G* (G' > 0) X = X* (X* > 0) M = mYd +M* (0 0) a = 0.7, b = 300, + = 0.25, m = 0.1, T* = 200, I' = 200, G* = 1000, M* = 600 and X* = 320 (a) Write the reduced form equation of the economy in terms of Y. (2 marks) (b) Write the autonomous taxation multiplier. Deduce the direction of the change in Y due to an increase in T*, assuming that the marginal propensity to import, m, is less than the marginal propensity to consume, a. (2 marks) (c) Write the government expenditure multiplier. Deduce the direction of the change in Y due to an increase in G" /2 markel

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