1. *Suppose that the economy is described by: Y =C(Y,T)+I(Y,i)+G, with G, T exogenous. (a) Use...

1. *Suppose that the economy is described by: Y =C(Y,T)+I(Y,i)+G, with G, T exogenous.

(a) Use the total derivative to derive di/dY

(b) What is the sign of this derivative?

(d) Graph this curve.

(e) Use the total derivative to find dY/dG and dY/dT

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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