Rewrite the national income model of exercise 3.5-1 in the format of 4.1 with the variables in the order Y, T and C
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Rewrite the national income model of exercise 3.5-1 in the format of (4.1),with the variables in the order Y, T, C
Exercise 4.1 Rewrite the market model (3.12) in the
format of 4.1
2. with the variables arranged in the following order: Q_d1, Q_s1,
Q_d2, Q_s2, P_1, P_2. write out the coefficient matrix, the
variable vector, and the constant vector.
4. Rewrite the national-income model (3.23) in the format of (4.1),
with U asbtye first variable. Write out the coefficient matrix and
the constant vector.
3.12 model
3.23 model
4.1 matrices and vectors
The pictures are only a samplebso you could...
2. Consider the National Income model given by the following equations. Y-C-I.-G, = 0 C-a-B(Y - T) = 0 T-y-SY=0 where Y, C, and T are endogenous variables and I., G., a, b, Y, 8 are exogenous and B and 8 are positive fractions. Use Cramer’s Rule to find the effect of a change in G, on Y and C.
6. Given the national income model Y-C+IoGo where R is transfer payments, and the other variables are as defined in class. Write the model in the form of AX=D, where A is a coefficient matrix, X is a variable vector, and D is a constant vector. Check whether A is nonsingular.
National Income Model - Application of Matrix Algebra Consider the following three-sector national income determination model: C = 30 + 0.75 (Y − T) T = 10 + 0.3Y I = 250 G = 100 Determine the exogenous and endogenous variables in the system. Solve the model presented in the above system of equations using the determinant and the inverse matrix method to find the equilibrium values of unknown variables. Verify your solution in part (b) above by solving these...
Let the national-income model be Y = C + I0+ G C = a + b(Y –T0)(a > 0, 0 < b < 1) G = gY(0 < g < 1) a. Solve the above national-income model by Crammer’s rule. b. In your answers in part a, what restriction on the parameters is needed for a solution to exist?
1. Points = 18. Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b (Y-T) I=k+rY G=Go T=f+jY 0<b<1 (<r<1 a> 0 in mln dollars; k>0 in mln dollars; Go >O in mln dollars p> 0 in mln dollars; 0<j<1 1) Discuss in words the meaning of each of the equations in the model (3 points); 2) Find the equilibrium level of GDP (Y) in reduced form (3 points); 3) If we know the...
Consider National-Income Model: National Income: Consumption: Investment: Government Sector: Taxes: Y=C+I+G C = a + b (Y-T) I=k+rY G=GO T=f+jY <b<1 (<r<1 a>0 in mln dollars; k>O in mln dollars; Go >O in mln dollars fo in mln dollars; 0<j<1 1) Discuss in words the meaning of each of the equations in the model (3 points); 2) Find the equilibrium level of GDP (Y*) in reduced form (3 points); 3) If we know the parameters of the system, find the...
National Income Model - Application of Matrix Algebra Consider the following three-sector national income determination model: C = 30 + 0.75 (Y − T) T = 10 + 0.3Y I = 250 G = 100 Determine the exogenous and endogenous variables in the system. Solve the model presented in the above system of equations using the determinant and the inverse matrix method to find the equilibrium values of unknown variables. Verify your solution in part (b) above by solving these...
7. In the following macroeconomic model, the unknowns are Y (national income) and C (consumption): Y=C+5 C=10+ 0.8Y a. Solve for Y and C.
15.2.2
15.2.1 Consider the following macroeconomic model: Y = C+1, C = a +by (a > 0, 0<b< 1). The endogenous variables Y and C are national income and consumption respec- tively, and the exogenous variable I is investment. Find the equilibrium values of Y and C in terms of I and the parameters a, b. Find also an expression for the change in Y when I increases from Io to I1, determine its sign and comment on its magnitude....