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Let the national income model be written in the form 0 0 = 0 ( ) = 0 = 0 where the
endogenous variables are Y (national income), C ((planned) consumption expenditure) and T
(taxation), and the exogenous variables are I0 (investment expenditure) and G0 (government
expenditure). a) Find the government expenditure multiplier by the implicit function rule. b) Find
the nonincome tax multiplier by the implicit function rule.

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Let the national income model be written in the form 0 0 = 0 .pdf

  • 1. Let the national income model be written in the form 0 0 = 0 ( ) = 0 = 0 where the endogenous variables are Y (national income), C ((planned) consumption expenditure) and T (taxation), and the exogenous variables are I0 (investment expenditure) and G0 (government expenditure). a) Find the government expenditure multiplier by the implicit function rule. b) Find the nonincome tax multiplier by the implicit function rule.