Intro to Mathematical Economics

Comparative Statistics

Consider the following closed economy model: Y:C+G+h C:H(YTu) 0

Consider the following closed economy model: Notice that the way it's setup the model has two exogenous variables, investment (ld and taxes (10, and three endogenous variables: income (Y, consumption (C, and government expenditure (G. A. Determine whether the implicit function theorem is applicable here, and explain. [10 Points] B. What is the partial effect of Toon YQ Can you sign it? [5 Points] C. What is the partial effect of Toon G'? Can you sign it? [5 Points] D. What is the partial effect of loon CQ Can you sign it? (5 Points]