Question

C_t =a+bY_t-1...(1)

K_t=CY_t-1...(2)

I_t=K_t - K_t-1= K_t - CY_t-2...(3)

G_t =G....(4)

Y_t = C_t + I_t + G_t

_t In terms of Y_t-1, Y_t-2, and the parameter of the model.

Answer 1

$$solution$$

$c_t-a=b[Y_{t-1}]$

$K_t=C[Y_{t-1}]$

$L_t-K_t=C[Y_{t-2}]$

$G_t=G$

$Y_{t+1 }= G_{t^2}$