a) Consider the following equations of an open economy Y=C+I+G+X-M C = 100 + 0.75(Yd)yd = Y – T I = 100 – 125Y G = 50 T = 50 M = 100 + 0.25(Y) X = 50 Required; i. List all the endogenous and exogeneous variables in the model. ii. Which are behavioural equations in the model? iii. Derive equilibrium levels of Y, C, I_and M.

a) Consider the following equations of an open economy Y=C+I+G+X-M C = 100 + 0.75(Yd)yd = Y – T I = 100 – 125Y G = 50 T = 50 M = 100 + 0.25(Y) X = 50 Required; i. List all the endogenous and exogeneous variables in the model. ii. Which are behavioural equations in the model? iii. Derive equilibrium levels of Y, C, I_and M.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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