Solve the system of equations to obtain equilibrium values

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Reference no: EM13239088

Suppose that the national income is described by the following equations:
Y = C + Io + G
C = a + b(Y - To)
G = d - gY

1. Set up the system of equations in matrix form.
2. Solve the system of equations to obtain the equilibrium vales of Y, C and G
3. Obtain the equilibrium budget balance

Reference no: EM13239088

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