(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

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter4: The Aggregate Economy

Section: Chapter Questions

Problem 6E

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