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Let the national income model be: Y = C + 10 + G C=a+b(Y-TO) (a>0, 0 1. a) Rewrite this set of equations into

  

Let the national income model be: Y = C + 10 + G C=a+b(Y-TO) (a>0, 0 1. a) Rewrite this set of equations into a matrix format 2. b) Find the inverse of the coefficients matrix 3. c) What restriction on the parameters is needed for a solution to exist? In other words, what restriction is needed in order to make the coefficients matrix non-singular? 4. d) Use the Inverse method to find the equilibrium values of National Income(Y), Consumption (C), and Government Expenditure (G). 5. e) Use the Cramer's rule to find the values of all three variables at the equilibrium. Are they equal to what you found in d)?

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