3. The equations defining a model of two trading nations are given byY, = C, + 1 + X, - M2C, = 0.8Y, + 100I = 300Y, = C, + I* + X, – M,C, = 0.7Y, + 50I* = 200M, = 0.3Y,M, = 0.1Y,Express this system in matrix form and hence find the values of Y, and Y,. Calculatethe balance of payments between these countries.

We are going to represent the provided system of equations in a matrix form.

3. The equations defining a model of two trading nations are given by Y, = C, + 1 + X, - M, Y, = C, + I+ X, - M, C, = 0.7Y, + 50 I = 200 C = 0.8Y, + 100 I = 300 M, = 0.1Y, M, = 0.3Y, Express this system in matrix form and hence find the values of Y, and Y3. Calculate the balance of payments between these countries.

3. The equations defining a model of two trading nations are given by Y, = C, + 1 + X, - M, Y, = C, + I+ X, - M, C, = 0.7Y, + 50 I = 200 C = 0.8Y, + 100 I = 300 M, = 0.1Y, M, = 0.3Y, Express this system in matrix form and hence find the values of Y, and Y3. Calculate the balance of payments between these countries.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. The equations defining a model of two trading nations are given by
Y, = C, + 1 + X, - M2
C, = 0.8Y, + 100
I = 300
Y, = C, + I* + X, – M,
C, = 0.7Y, + 50
I* = 200
M, = 0.3Y,
M, = 0.1Y,
Express this system in matrix form and hence find the values of Y, and Y,. Calculate
the balance of payments between these countries.

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