The following is part of an economic model of a metropolitan area. 1. Explain the meaning of equations (1), (2), (3) (7) and (8). 2. What is this model designed to explain? Yj = G+I; + Gj + Exj - Im; (1) where: Yj = Aggregate income in area "j" C = Aggregate consumption in area "j" Yj = Witn + Rj+ N; (2) G; = Government purchases in area ";" Tri = Transfer payments to area ";" C = a+ b(Wj - Tjw + Tri) + c(nj + R; + Nj - Tim) (3) Tiw = Taxes on wages in area "j" Tin = Taxes on profits, rent & net interest Gj = GI + Gis + Gif (4) Ex; = Exports from area "]" Im; = Imports to area "j" Tiw = Tjwl + Tjws + Tjwf Profit income in area ";"> R= Rental income in area ";"> Tin = Tinl + Tins + Tinf N: = Net interest income in area ";"> Wi= Total Wage income in area ";" Wj = d+wL; + eGj Wi= Average wage rate in area ";" Li = Employment in area "j" wi = f +hGj -mwj b = Marginal propensity to consume out of wage income in region "j" c = Marginal propensity to consume out of profit, rent and interest income 1, s, f = Subscripts indicate local, state and federal governments, respectively