code>Q3C_(t)=\beta _(1)+\beta_(2)Y_(t)+u_(t) I_(t)=\alpha _(1)+\alpha _(2)r_(t)+v_(t)Y_(t)=C_(t)+I_(t)+G_(t) where C_(t) is aggregate consumerexpenditure in year t,I_(t) is aggregate...
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Economics
code>Q3C_(t)=\beta _(1)+\beta_(2)Y_(t)+u_(t) I_(t)=\alpha _(1)+\alpha _(2)r_(t)+v_(t)Y_(t)=C_(t)+I_(t)+G_(t) where C_(t) is aggregate consumerexpenditure in year t,I_(t) is aggregate investment, G_(t) isaggregate current public expenditure, Y_(t) is aggregate output,and r_(t) is the rate of interest. State which variables in themodel are endogenous and exogenous, and explain how you would fitthe equations, if you could.
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