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Consider the following Macroeconomics model: Y = C+I+Go C = a+ B(Y -To) (a > 0;0 0;0 Consider the following Macroeconomics model: I ro In

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Consider the following Macroeconomics model: Y = C+I+Go C = a+ B(Y -To) (a > 0;0 0;0

Consider the following Macroeconomics model: I ro In this model the endogenous variables are Y and C. Notice that even though I doesn't have a () subscript, it is fixed once you know ro, so you don't really need to solve for it. The exogenous variables are, then, Go, Tn, and Tn. We're going to reduce the system to two equations to solve for Y* and , and then go back to the other ones (a) Substitute the expression of the last equation into the first, and solve this system of two equations to find the explicit functions for Y* and C'. (10 Points)

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