(1) Prove the following equality GDP= p'd = v'x, where d and u are the final demand vector andthe unit value added vector, repectvely.(2) Assume that there is a 3-sector economy with the internal consumption matrix0.7 0.3 0.20.1 0.4 0.30.2 0.4 0.11A =0.1 0.1 0.30.9 0.8 0.30.1 0.5 0.4Check whether the economy is productive. What can we deduce about the column sums?(3) Solve the Leontief production equation for an economy with three sectors, ginve that0.2 0.2 00.3 0.1 0.3 and d =0.1 0 0.240[]80

The application of the matrix tool is wide in economics as it helps economists analyze the economic…

(1) Prove the following equality GDP= p'd = v'x, where d and u are the final demand vector and the unit value added vector, repectvely. (2) Assume that there is a 3-sector economy with the internal consumption matrix 0.7 0.3 0.2 0.1 0.4 0.3 0.2 0.4 0.1 ] [ A = 0.1 0.1 0.3 0.9 0.8 0.3 0.1 0.5 0.4 Check whether the economy is productive. What can we deduce about the column sums? (3) Solve the Leontief production equation for an economy with three sectors, ginve that 0.2 0.2 0 0.3 0.1 0.3 and d = 0.1 0 0.2 40 60 80

(1) Prove the following equality GDP= p'd = v'x, where d and u are the final demand vector and the unit value added vector, repectvely. (2) Assume that there is a 3-sector economy with the internal consumption matrix 0.7 0.3 0.2 0.1 0.4 0.3 0.2 0.4 0.1 ] [ A = 0.1 0.1 0.3 0.9 0.8 0.3 0.1 0.5 0.4 Check whether the economy is productive. What can we deduce about the column sums? (3) Solve the Leontief production equation for an economy with three sectors, ginve that 0.2 0.2 0 0.3 0.1 0.3 and d = 0.1 0 0.2 40 60 80

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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