ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Let the equilibrium condition for
?(?) + ?(?) = ?(?) + ? (?
′
, ?
′
,?
′ > 0; ?
′ + ?
′ > ?
′
)
Where S, Y, T, I and G stand for saving, national income, taxes, investment and government
expenditure respectively. All derivatives are continuous
a. Interpret the economic meaning of the derivatives ?
′
, ?
′&?
′
b. Check whether the conditions for the implicit function theorem are satisfied. If so, write
the equilibrium identity
c. Find ??̅
??
and discuss its economic implications
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