Question
The following equations describe economy Y. All figures except the parameters are in millions of dollars. C = Co + cYD (Private Consumption by Households)
The following equations describe economy Y. All figures except the parameters are in millions of dollars.
C = Co + cYD (Private Consumption by Households)
YD = Y + TR - T (Private disposable income)
T = To + tY (Total taxes)
G = Go (Government Expenditure)
TR = TRo (Transfer Payments)
I = Io + zY (Private investment)
X = Xo (Total Exports)
IM = IMo + mY (Total imports)
SP = YD - C
SG = T - (G + TR)
SF = IM - X
Y = C + I + G + X - M (Equilibrium condition)**
Endogenous Variables: C, YD, T, IM, I and Y
Exogenous Variables: Co = 450, To = 80, Io = 400, Go = 250, TRo = 250, Xo = 200, IMo = 110
Parameters: c = 0.68, t = 0.16, z = 0.12, m = 0.30
Use the information from page 1 and 2 to calculate the values for;
i)Y
ii)YD
iii)IM
iv)SG
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