1. Suppose you have the following national income model: Y -C = G. -0.45Y+ C = 102 -0.45 T -0.4 Y + T = 179 Where G. = 336 Convert this system of equations in matrix form. (a) What is the determinant of the coefficient matrix? (Give your answer to two decimal places) (Note: you can use either inversion or Cramer's rule to find the values of Y, C and T.) (b) What is the equilibrium value of Y? (Give your answer to two decimal places) (c) What is the equilibrium value of C? (Give your answer to two decimal places) d) What is the equilibrium value of T? (Give your answer to two decimal places)

1. Suppose you have the following national income model: Y -C = G. -0.45Y+ C = 102 -0.45 T -0.4 Y + T = 179 Where G. = 336 Convert this system of equations in matrix form. (a) What is the determinant of the coefficient matrix? (Give your answer to two decimal places) (Note: you can use either inversion or Cramer's rule to find the values of Y, C and T.) (b) What is the equilibrium value of Y? (Give your answer to two decimal places) (c) What is the equilibrium value of C? (Give your answer to two decimal places) d) What is the equilibrium value of T? (Give your answer to two decimal places)

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter13: Measuring The Economy's Performance

Section13.1: National Income Accounting

Problem 5R

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