Question
Let the national income model be: Y = C + l 0 + G C = a - b(Y - T 0 ) (a >
Let the national income model be:
Y = C + l0+ G
C = a - b(Y - T0) (a > 0, 0 < b < 1
G=g^y (0 a.Identify the endogenous variables. b.Give the economic meaning of the parameter g. c.Find the equilibrium national income. d.What restriction on the parameters is needed for a solution to exist?
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Economics Today The Macro View
Authors: Roger LeRoy Miller
18th Edition
0133884872, 978-0133884876
