Q#2 Given the nation income model Y = C + Io + Go + X0 − Z C = Co + bYd Yd = Y − T0 Z = Z0 + zY Explain the equilibrium level of income and consumption Explain the economic meanings of b and z. List the endogenous and exogenous variables of the model?

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Q#2 Given the nation income model

Y = C + Io + Go + X0 − Z
C = Co + bYd
Yd = Y − T0
Z = Z0 + zY
Explain the equilibrium level of income and consumption
Explain the economic meanings of b and z.
List the endogenous and exogenous variables of the model?

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