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2) In the macroeconomic model below, Y is aggregate output, C is aggregate consump- tion, I is aggregate investment, r is interest rate, Go is

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2) In the macroeconomic model below, Y is aggregate output, C is aggregate consump- tion, I is aggregate investment, r is interest rate, Go is government spending, Mo is supply of money, and t is tax rate. The variables Y, I, C, and r are endogenous, Go, Mo, 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 find the determinant of the coefficient matrix. Y = C+ lo + Go I = c - dr C = a+b(1 -t) Y Mo = KY - mr 3) Using Cramer's rule, solve for Y* and I* in the macroeconomic model of question 2

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