= C + lo + Go = a + b(Y – T) = d+ tY (a > 0, 0 0, 0

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Given the following model:
Y = C + lo + Go
C = a + b{Y – T)
T = d+tY
(a > 0, 0 < b < 1) [T: taxes]
(d > 0, 0<t < 1) [t: income tax rate]
-
%3D
Transcribed Image Text:Given the following model: Y = C + lo + Go C = a + b{Y – T) T = d+tY (a > 0, 0 < b < 1) [T: taxes] (d > 0, 0<t < 1) [t: income tax rate] - %3D
1. Solve the national-income model in Exercise 3.5-1:
(b) By Cramer's rule
(a) By matrix inversion
(List the variables in the order Y, C, T.)
Transcribed Image Text:1. Solve the national-income model in Exercise 3.5-1: (b) By Cramer's rule (a) By matrix inversion (List the variables in the order Y, C, T.)
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