HOMEWORK-3
Q1)
Q2) Find the adjoint matrix for each matrix, and calculate the inverse of each matrix.
Please remember adjoint matrix is the transpose of the matrix of cofactors.
Q3) Consider the following simple Keynesian macroeconomic model
where the endogenous variables include national income (Y), consumption (C), and
investment (I), and the exogenous variables include government spending (G) and the interest
rate (R).
(a) Set up this model with a 3 x 3 matrix of parameters, a 3 x 1 vector of endogenous
variables, and a conformable vector of exogenous variables.
(b) Find the inverse of the 3 x 3 matrix of parameters.
(c) Evaluate the effect of a $50 billion decrease in government spending on income.
Q4) Find the solution to each system of equations using Cramer’s rule