Briefly define an endogenous variable and an exogenous variable. What

Briefly define an endogenous variable and an exogenous variable. What variables are endogenous in the classical model? What variables are exogenous.

What will be an ideal response?

ANSWER

An endogenous variable is a variable whose value is determined within or by the model whereas the value of an exogenous variable is determined by forces outside the model. The real wage, the level of labor, and output are endogenous in the classical model. Exogenous variables include labor supply, capital, and technology.