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Y=c0+c1(YT)+b0+b1Yb2i+GM=d0+d1Yd2i The given equations indicate that the price level is normalized to P=1. Assignment questions 3.1 What is the impact of the shock bo on
Y=c0+c1(YT)+b0+b1Yb2i+GM=d0+d1Yd2i The given equations indicate that the price level is normalized to P=1. Assignment questions 3.1 What is the impact of the shock bo on the equilibrium income? Analyze the shock formally using the total differential and Cramer's rule. Derive the multiplier db0dY and interpret it. 3.2 Calculate the income multiplier you formally derived in 3.1 using the figures given below (rounded to two decimal places): c0=300c1=0.7b0=160b1=0.05b2=0.15d0=50d1=0.2d2=0.3M=200T=200G=200 Y=c0+c1(YT)+b0+b1Yb2i+GM=d0+d1Yd2i The given equations indicate that the price level is normalized to P=1. Assignment questions 3.1 What is the impact of the shock bo on the equilibrium income? Analyze the shock formally using the total differential and Cramer's rule. Derive the multiplier db0dY and interpret it. 3.2 Calculate the income multiplier you formally derived in 3.1 using the figures given below (rounded to two decimal places): c0=300c1=0.7b0=160b1=0.05b2=0.15d0=50d1=0.2d2=0.3M=200T=200G=200
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