4. The equilibrium levels of income Y, consumption C, disposable income Ya, and taxationT, for a three-sector macroeconomic model satisfy the structural equations:Y = C + 1, + GoC = a + bYd (0 0)Ya = Y – TT = tY + T, (0 < t < 1,T, > 0)Express this system in the form AX = dUsing Cramer's rule, find the equilibrium levels of consumption (C*), disposableincome (Ya*) and taxation (T*)i.ii.

We are going to find the matrix representation form for IS curve equation.

4. The equilibrium levels of income Y, consumption C, disposable income Ya, and taxation T, for a three-sector macroeconomic model satisfy the structural equations: Y = C + 1, + Go C = a + bYa (0 < b < 1, Ya = Y – T T = tY + T, (0 0) a > 0) Express this system in the form AX = d Using Cramer's rule, find the equilibrium levels of consumption (C*), disposable income (Ya*) and taxation (T*) i. ii.

4. The equilibrium levels of income Y, consumption C, disposable income Ya, and taxation T, for a three-sector macroeconomic model satisfy the structural equations: Y = C + 1, + Go C = a + bYa (0 < b < 1, Ya = Y – T T = tY + T, (0 0) a > 0) Express this system in the form AX = d Using Cramer's rule, find the equilibrium levels of consumption (C), disposable income (Ya) and taxation (T*) i. ii.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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