Math Problem Statement

Assume that an economy is based on three industrial​ sectors, agriculture​ (A), building​ (B), and energy​ (E). The technology matrix​ M, and demand matrix D​ (in billions of​ dollars), are shown below. Also shown below is the inverse of

Iminus−​M,

where I is the identity matrix.

Start 3 By 1 Matrix 1st Row 1st Column font size decreased by 1 font size decreased by 1 font size decreased by 1 font size increased by 1 Upper A 2nd Row 1st Column font size decreased by 1 font size decreased by 1 font size decreased by 1 font size increased by 1 Upper B 3rd Row 1st Column font size decreased by 1 font size decreased by 1 font size decreased by 1 font size increased by 1 Upper E EndMatrix ModifyingAbove left bracket Start 3 By 1 Matrix 1st Row 1st Column 0.7 2nd Row 1st Column 0.1 3rd Row 1st Column 0.1 EndMatrix With Upper A ModifyingAbove Start 3 By 1 Matrix 1st Row 1st Column 0.2 2nd Row 1st Column 0.6 3rd Row 1st Column 0.1 EndMatrix With Upper B ModifyingAbove Start 3 By 1 Matrix 1st Row 1st Column 0.0 2nd Row 1st Column 0.2 3rd Row 1st Column 0.4 EndMatrix right bracket With Upper E

A

B

E

 A

0.7

0.1

0.1

B

0.2

0.6

0.1

E

0.0

0.2

0.4

Mequals=

Dequals=

left bracket Start 3 By 1 Matrix 1st Row 1st Column 50 2nd Row 1st Column 38 3rd Row 1st Column 32 EndMatrix right bracket

50

38

32

left parenthesis Upper I minus Upper M right parenthesis Superscript negative 1(I−M)−1equals=

left bracket Start 3 By 3 Matrix 1st Row 1st Column 4.4 2nd Column 2.4 3rd Column 0.8 2nd Row 1st Column 1.6 2nd Column 3.6 3rd Column 1.2 3rd Row 1st Column 1 2nd Column 1 3rd Column 2 EndMatrix right bracket

4.4

2.4

0.8

1.6

3.6

1.2

1

1

2

Find the output for each of the three​ sectors,

Upper XX.

Question content area bottom

Part 1

Xequals=enter your response here

​(Simplify your​ answer.)

Solution

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Math Problem Analysis

Mathematical Concepts

Matrix Operations
Linear Algebra
Economic Modeling

Formulas

X = (I - M)^{-1} * D

Theorems

Matrix Inversion

Suitable Grade Level

College Level (Economics or Advanced Math)