Hi,

I am currently working through some coursework that I need to complete but I am struggling with this particular set of questions. I am unsure how to approach the problems. Could you guide me in how to begin the question, so I am able to solve it? I believe that the first step is to turn the model into a matrix, but I am unsure how to do that.

Thanks.

Three-sector national income determination model:

C = 20 + 0.85 (Y - T)

T = 25 + 0.25Y

I = 155

G = 100

Solve the model presented in the above system of equations using the determinant

and the inverse matrix for the equilibrium values of unknown variables.

Verify your solution by solving these simultaneous equations.