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Consider the following linear model of a simple economy: Y=C+|+Go b(1-t)Y=C-a l=d-ei kY= M0+pl where the endogenous variables are Y, C, l and i, the
Consider the following linear model of a simple economy: Y=C+|+Go b(1-t)Y=C-a l=d-ei kY= M0+pl where the endogenous variables are Y, C, l and i, the exogenous variables are Go and Mo and the model parameters are a, b, d, e, k, p and t. (a) Does this linear model have a unique solution? Briey explain. (b) Solve for C* using Cramer's rule
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