In The Following National Income Model, What Is/are The Endogenous ...

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In the following national income model, what is/are the endogenous variable(s)? Y = C + I0 + G0 C = 25 + 6Y1/2 I0 = 16 G0=14 Only C Y & C I & G Only Y In the following national income model, what is/are the endogenous variable(s)? Y = C + I0 + G0 C = 25 + 6Y1/2 I0 = 16 G0=14 Only C Y & C I & G Only Y

Added by Omar W.

Step 1

First, let's identify the variables in the model: - Y is the national income - C is the consumption - I0 is the investment - G0 is the government spending Now, let's analyze the equations: Show more…

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Transcript

- 00:01 In this question we have to find out the endogenous variable. 00:05 Ok, endogenous variable. 00:08 We have the national income equation. 00:11 Y equals to c plus i naught plus g naught. 00:15 Then c equals to 25 plus 6y raised to half. 00:21 I naught is given as 16. 00:24 G naught equals to 14. 00:27 Correct...

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