A standard macroeconomic model consists of these two equations:
M = l*P*Y + L(r) and S(y,r,g) = I(Y,r)
M, l and P are positive constants, and L, S, I are differentiable functions. Assume that g is a parameter. Differentiate the system and find expressions for dy/dg and dr/dg by using Cramer’s rule.
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