Suppose that the Leontief input-output coefficient matrix is [0.1 0.4] A = - 0-2 0-5] and the final demand vector is Find the total direct and indirect requirement of the second input to satisfy the final demand. Show that in the regression model Y; =a +BX; +U;; i=1, 2, , n, the covariance between the regressor and the error term is zero under ordinary least squares method of estimation.

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A:

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A:

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