ECO201 Homework 2

ECO201 Homework 2 - Y b a C G I C Y a. Find the endogenous...

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ECO201 Homework 2 Group 1 1. Find the equilibrium Price (P*) and Quantity (Q*) for both commodities from the following model- 2 2 2 1 2 1 2 1 1 1 1 2 1 1 32 6 4 2 92 15 5 3 82 s d s d s d s d Q Q P Q P P Q Q Q P Q P P Q = + - = - + = = + - = + - = Using a) Cramer’s Rule b) Matrix inversion Group 2 1. Given the following model- 1 0 , 0 1 0 , 0 ) ( + = - + = + + = t d tY d T b a T
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Unformatted text preview: Y b a C G I C Y a. Find the endogenous variables. b. Find the equilibrium income (Y), consumption(C) and tax (T) using Cramers Rule and Matrix Inversion. c. What is the value of the national income multiplier?...
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