Consider the following national income model : Y = C + I + Go C = 224 + 0.55Y 3.1I = 184 + 0.22Y Where Go = 187 a. What is the determinant of the coefficient matrix? b. What is the equilibrium value of Y? c. What is the equilibrium value of C? d. What is the equilibrium value of I?
Consider the following national income model : Y = C + I + Go C = 224 + 0.55Y 3.1I = 184 + 0.22Y Where Go = 187 a. What is the determinant of the coefficient matrix? b. What is the equilibrium value of Y? c. What is the equilibrium value of C? d. What is the equilibrium value of I?
Chapter5: Gross Domestic Product
Section: Chapter Questions
Problem 13SQ
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Consider the following
Y = C + I + Go
C = 224 + 0.55Y
3.1I = 184 + 0.22Y
Where Go = 187
a. What is the determinant of the coefficient matrix?
b. What is the equilibrium value of Y?
c. What is the equilibrium value of C?
d. What is the equilibrium value of I?
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