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Consider the following national-income model. Y=C+I+G. C=a+b(Y-T) where a > 0, b = (0,1). G=gY where g = (0,1). a) Identify the endogenous variables.
Consider the following national-income model. Y=C+I+G. C=a+b(Y-T) where a > 0, b = (0,1). G=gY where g = (0,1). a) Identify the endogenous variables. b) Give the economic interpretation of the parameter g. c) Find the equilibrium national income. d) What restrictions on the parameter is needed for a solution to exist? Find Y and C from the following. Y=C+I+G- C = 25+6Y I=16. G = 14.
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a The endogenous variables are consumption and income Values for these variables are only determ...
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Probability & Statistics For Engineers & Scientists
Authors: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying
7th Edition
9789813131279, 130415294, 9813131276, 978-0130415295
