Question
1.Given the following national income model: Y = C + I 0 + G 0 C = a + b(Y - T) [T = taxes]
1.Given the following national income model:
Y = C + I0 + G0
C = a + b(Y - T)[T = taxes]
T = d + tY[t = income tax rate]
Solve the model by
(i)matrix inversion
(ii)Cramer's rule
(List the variable in the order Y, C, T)
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Microeconomics Theory and Applications with Calculus
Authors: Jeffrey M. Perloff
3rd edition
133019934, 978-0133019933
