9 Systems of Equations Flashcards
1
Q
Endogenous variables
A
Variables determined by the model (unknowns)
2
Q
Exogenous variables
A
External variables not determined by the model (parameters)
3
Q
When can we usually solve for endogenous variables in terms of exogenous variables?
A
When there are as many equations as endogenous variables
4
Q
When is a system consistent?
A
When it has solutions
5
Q
In general when are there unique solutions?
A
When there are as many equations as unknowns
