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Using the simple national income model:
Using the simple national income model:
Y = C + Io + Go
C = a + bY
where Io and Go are exogenous variables, and Y and C are endogenous variables, and a, b are constants.
Set up this model in a matrix form and solve for: Y, C in terms of Io, Go, a, and b
D. Determine the impact of changes in Go and Io on Y and C.
I need a clear answer in detalis with econmics analysis or explantions .. thx