b) Let aggregate national income be given by ! = ! + ! + ! Where C, I and G are consumption, investment and government expenditure. Assume that consumption is given by ! = ! Investment is given by ! = + (!"# !"$) And government expenditure declines over time according to ! = %(1 )!, 0

b) Let aggregate national income be given by Yr = Ct + I: + G; Where C, I and G are consumption, investment and government expenditure. Assume that consumption is given by C; = th Investment is given by II: = 15+ 3(\"71 Ytiz) And government expenditure declines over time according to Gt: 60(16)', 0