In the macroeconomic model below, Y is aggregate output, C is aggregate consump- tion, I is aggregate investment, r is interest rate, G0 is government spending, M0 is supply of money, and t is tax rate. The variables Y , I, C, and r are endogenous, G0, M0, and t are exogenous, and a, b, c, d, k, and m are parameters. Express this system of equations in a matrix form (clearly writing out each of the matrices) and nd the determinant of the coe cient matrix.

Y = C + I0 + G0 I = c dr

C = a + b(1 t)Y M0 = kY mr

3) Using Cramers rule, solve for Y and I in the macroeconomic model in question 2

2) In the macroeconomic model below, Y is aggregate output, 0 is aggregate consump- tion, I is aggregate investment, 7" is interest rate, G0 is government spending, M0 is supply of money, and t is tax rate. The variables Y, I, C, and r are endogenous, GO, M0, and t are exogenous, and a, b, c, d, k, and m are parameters. Express this system of equations in a matrix form (clearly writing out each of the matrices) and nd the determinant of the coefcient matrix. Y=C+10+Go I=Cd'l" C=a+b(1t)Y M0=kYmr 3) Using Cramer's rule, solve for Y" and I * in the macroeconomic model of question 2