Consider the simplified national income model:

Y = C + I…………(1)

Where Y is GDP (national income), C is consumption, and I am investment. Consumption is determined by a behavioral equation, which in this problem takes the form

C= 3000+ 2/3Y……..(2)

Where Y and C are endogenous variables and Investment is exogenous, and, initially we assume

I =500……………….(3)

Determine the equilibrium level of national income (Y) and consumption (C) by using reduced form, and matrix algebra.