- 2 Consider A National Income Model Below Y C 10 Go C A B Y T A 0 0 B 1 T D Ty D 0 0 T 1 A 1 (22.62 KiB) Viewed 32 times
2-) Consider a national income model below: Y = C +10 + Go C = a + b(Y - T), (a > 0,0 0,0
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2-) Consider a national income model below: Y = C +10 + Go C = a + b(Y - T), (a > 0,0 0,0
2-) Consider a national income model below: Y = C +10 + Go C = a + b(Y - T), (a > 0,0<b<1) T = d+tY, (d > 0,0 <t <1) a) Identify the endogenous and exogenous variables. b) What does the constant parameters mean? Why are there restrictions on the parameters? c) Write the model in matrix form and solve for Y*, C*,T'.
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