The table below is the multiplier matrix of the 4 sector economic model.Exogenous VariablesG*T*ANDCTEven.YDMBASSA1.1630.8170.3111.730.3110.311- 0.3110.222I*1.1630.8170.3111.730.3110.311- 0.3110.2221.1630.8750.3111.730.311-0.655-0.3110.222- 1.094-0.8150.781-1.875-0.2190.7810.219- 0.563X*1.1630.8150.3111.250.3110.3110.5470.222a. Calculate the change of each endogenous variable value of the effect ofAG* = 160M*- 1.163- 1.393- 0.311- 1.250.655- 0.311- 0.547- 0.222b. Calculate the net change in each value of the endogenous variable as a result of thesimultaneous change, AX* = 200 and AM* = -150c. AT* = 250; By how much does the government need to change G* so that the net effectof these 2 shocks (AT* = -250 and AG* which you calculated) so that AB = 0?d. Calculate the net change in each value of the endogenous variable as a result ofthe 2 shocks occurring in (c).

A 4 sector economic model is a simplified representation of an economic system that divides monetary…

a. Calculate the change of each endogenous variable value of the effect of AG* = 160 b. Calculate the net change in each value of the endogenous variable as a result of the simultaneous change, AX* = 200 and AM* = -150 c. AT* = 250; By how much does the government need to change G* so that the net effect of these 2 shocks (AT* = -250 and AG* which you calculated) so that AB = 0? d. Calculate the net change in each value of the endogenous variable as a result of the 2 shocks occurring in (c).

a. Calculate the change of each endogenous variable value of the effect of AG* = 160 b. Calculate the net change in each value of the endogenous variable as a result of the simultaneous change, AX* = 200 and AM* = -150 c. AT* = 250; By how much does the government need to change G* so that the net effect of these 2 shocks (AT* = -250 and AG* which you calculated) so that AB = 0? d. Calculate the net change in each value of the endogenous variable as a result of the 2 shocks occurring in (c).

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

The table below is the multiplier matrix of the 4 sector economic model.
Exogenous Variables
G*
T*
AND
C
T
Even.
YD
M
B
AS
S
A
1.163
0.817
0.311
1.73
0.311
0.311
- 0.311
0.222
I*
1.163
0.817
0.311
1.73
0.311
0.311
- 0.311
0.222
1.163
0.875
0.311
1.73
0.311
-0.655
-0.311
0.222
- 1.094
-0.815
0.781
-1.875
-0.219
0.781
0.219
- 0.563
X*
1.163
0.815
0.311
1.25
0.311
0.311
0.547
0.222
a. Calculate the change of each endogenous variable value of the effect of
AG* = 160
M*
- 1.163
- 1.393
- 0.311
- 1.25
0.655
- 0.311
- 0.547
- 0.222
b. Calculate the net change in each value of the endogenous variable as a result of the
simultaneous change, AX* = 200 and AM* = -150
c. AT* = 250; By how much does the government need to change G* so that the net effect
of these 2 shocks (AT* = -250 and AG* which you calculated) so that AB = 0?
d. Calculate the net change in each value of the endogenous variable as a result of
the 2 shocks occurring in (c).

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