Economics Quantitatively Treated :Simultaneous Equations Assignment
- Subject Code :
EC4004
Economics Quantitatively Treated (EC4004)Exercise12:SimultaneousEquations2
- Solve the following sets of equations for Y (be careful to identify which variablesare exogenousandwhichareendogenous):
(a) E=Y |
(1.a.1) |
E=C+ I |
(1.a.2) |
C=0.8Y |
(1.a.3) |
(b) E=Y |
(1.b.1) |
E=C+ I |
(1.b.2) |
C=0.5Y |
(1.b.3) |
(c) E=Y |
(1.c.1) |
E=C+ I |
(1.c.2) |
C=100+0.5Y |
(1.c.3) |
(d) E=Y |
(1.d.1) |
E=C+ I+ G |
(1.d.2) |
C=0.75Y |
(1.d.3) |
I=0.1Y |
(1.d.4) |
- In the economy described by the set of equations (1.a.1) - (1.a.3), how much will GDP (Y) increasebyifinvestment(I)increasesbyoneunit?
- In the economy described by the set of equations (1.b.1) - (1.b.3), how much will GDP (Y) increasebyifinvestment(I)increasesbyoneunit?
- In the economy described by the set of equations (1.c.1) - (1.c.3), how much will GDP (Y) increasebyifinvestment(I)increasesbyoneunit?
- In the economy described by the set of equations (1.d.1) - (1.d.4), how much will GDP (Y)increasebyifgovernmentexpenditure(G)increasesbyoneunit?