3) In the macroeconomic model below, Y is aggregate output, C is aggregate consump- tion, Io is aggregate investment, Go is government spending, T is the total amount of taxes collected by the government, and t is income tax rate. The variables Y, C, and I are endogenous, Go, Io, and t are exogenous, and a, b, and k are parameters. Y-C+ Io + Go C=a+b(Y-T) T-k+tY (a > 0,6 € (0,1)) (k>0, t€ (0,1)) Calculate the determinant of the coefficient matrix A associated with this system of equations. The determinant of the coefficient matrix A is: a) A1-b.+ bt b) |A|-1-b-bt + a c) |A|-b+t d) A 1+a+b-t e) |A|-Go+b+t f) A-Io-b+t g) A|- Go+ Io +b-t

3) In the macroeconomic model below, Y is aggregate output, C is aggregate consump- tion, Io is aggregate investment, Go is government spending, T is the total amount of taxes collected by the government, and t is income tax rate. The variables Y, C, and I are endogenous, Go, Io, and t are exogenous, and a, b, and k are parameters. Y-C+ Io + Go C=a+b(Y-T) T-k+tY (a > 0,6 € (0,1)) (k>0, t€ (0,1)) Calculate the determinant of the coefficient matrix A associated with this system of equations. The determinant of the coefficient matrix A is: a) A1-b.+ bt b) |A|-1-b-bt + a c) |A|-b+t d) A 1+a+b-t e) |A|-Go+b+t f) A-Io-b+t g) A|- Go+ Io +b-t

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

3) In the macroeconomic model below, Y is aggregate output, C is aggregate consump-
tion, Io is aggregate investment, Go is government spending, T is the total amount of taxes
collected by the government, and t is income tax rate. The variables Y, C, and I are
endogenous, Go, Io, and t are exogenous, and a, b, and k are parameters.
Y=C+ Io + Go
C=a+b(Y-T)
T=k+tY
(a > 0,6€ (0,1))
(k>0, t€ (0,1))
Calculate the determinant of the coefficient matrix A associated with this system of
equations. The determinant of the coefficient matrix A is:
1-b.+ bt
a) A
b) A-1-b-bt + a
c) |A|=b+t
d) A1+a+b-t
e) |A| =Go+b+t
f) A-Io-b+t
8) A = Go + Io +b-t

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