Assume the following National Income Model:  Y =C+I+G C=α+β(Y −T)−S S = rδ T=γ+Yρ  where S is savings, T is taxes, and r is the interest rate. Find Y* using the equations above, and describe the comparative statics with respect to each of the exogenous variables. Assume that α, β, δ, and ρ are constants between 0 and 1.

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