MAT223

Economics (University of Toronto) Assuming a demand driven economy: a. Write down a complete, parametric system of equation that defines the macroeconomic equilibrium of this economy. b. Derive the AE as a function of actual national income and interpret it and every parameter of it. c. Solve for equilibrium national income. d. Using your answer in part (c), interpret the simple multiplier. e. Show in a graph the effect of the simple multip

Math Notation• Define subset, set equality• Sets, set builder notation, unions, intersections, special sets R, Z, Q • Find the sum of sets (e.g., A + B where A and B are sets).• Given two sets, determine if one is a subset of the other.• Draw subsets of R or R2.Vectors• Define linear combination, norm, and unit vector. • Define non-negative linear combination, convex linear combination• Explain the connection between vectors and points.• Draw vec