Find the equilibrium national income

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  1. Let the national-income model be
    Y = C + Io + Go                                   C= a + b (Y - T)                                        T = d + tY
  1. Identify the endogenous variables.
  2. Give the economic meaning of the parameter g.
  3. Find the equilibrium national income
  4. What restriction on the parameters is needed for a solution to exist?

Reference no: EM13975444

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