Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

The consumption matrix C for the U.S. economy in 1972 has the property that every entryin the matrix \({\left( {I - C} \right)^{ - 1}}\) is nonzero (and positive). What does that say about the effect of raising the demand for the output of just one sector of the economy?

Short Answer

Expert verified

An increase in the final demand for any sector will increase the demand for all sectors.

Step by step solution

Achieve better grades quicker with Premium

  • Unlimited AI interaction
  • Study offline
  • Say goodbye to ads
  • Export flashcards

Over 22 million students worldwide already upgrade their learning with Vaia!

01

State the \(\left( {i,j} \right)\) entry in \({\left( {I - C} \right)^{ - 1}}\)

From Exercise 8, the \(\left( {i,j} \right)\) entry in \({\left( {I - C} \right)^{ - 1}}\) corresponds to the effect on the production of sector \(i\) if the final demand for the output of sector \(j\) rises by one unit.

02

Find the effect of raising the demand for the output of one sector

An increase in the final demand for any sector increases the production of all sectors because all the entries are positive.

Therefore, an increase in the final demand for any sector increases the demand for all sectors.

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Suppose the first two columns, \({{\bf{b}}_1}\) and \({{\bf{b}}_2}\), of Bare equal. What can you say about the columns of AB(if ABis defined)? Why?

Show that \({I_n}A = A\) when \(A\) is \(m \times n\) matrix. (Hint: Use the (column) definition of \({I_n}A\).)

In Exercises 27 and 28, view vectors in \({\mathbb{R}^n}\)as\(n \times 1\)matrices. For \({\mathop{\rm u}\nolimits} \) and \({\mathop{\rm v}\nolimits} \) in \({\mathbb{R}^n}\), the matrix product \({{\mathop{\rm u}\nolimits} ^T}v\) is a \(1 \times 1\) matrix, called the scalar product, or inner product, of u and v. It is usually written as a single real number without brackets. The matrix product \({{\mathop{\rm uv}\nolimits} ^T}\) is a \(n \times n\) matrix, called the outer product of u and v. The products \({{\mathop{\rm u}\nolimits} ^T}{\mathop{\rm v}\nolimits} \) and \({{\mathop{\rm uv}\nolimits} ^T}\) will appear later in the text.

28. If u and v are in \({\mathbb{R}^n}\), how are \({{\mathop{\rm u}\nolimits} ^T}{\mathop{\rm v}\nolimits} \) and \({{\mathop{\rm v}\nolimits} ^T}{\mathop{\rm u}\nolimits} \) related? How are \({{\mathop{\rm uv}\nolimits} ^T}\) and \({\mathop{\rm v}\nolimits} {{\mathop{\rm u}\nolimits} ^T}\) related?

A useful way to test new ideas in matrix algebra, or to make conjectures, is to make calculations with matrices selected at random. Checking a property for a few matrices does not prove that the property holds in general, but it makes the property more believable. Also, if the property is actually false, you may discover this when you make a few calculations.

38. Use at least three pairs of random \(4 \times 4\) matrices Aand Bto test the equalities \({\left( {A + B} \right)^T} = {A^T} + {B^T}\) and \({\left( {AB} \right)^T} = {A^T}{B^T}\). (See Exercise 37.) Report your conclusions. (Note:Most matrix programs use \(A'\) for \({A^{\bf{T}}}\).

A useful way to test new ideas in matrix algebra, or to make conjectures, is to make calculations with matrices selected at random. Checking a property for a few matrices does not prove that the property holds in general, but it makes the property more believable. Also, if the property is actually false, you may discover this when you make a few calculations.

37. Construct a random \({\bf{4}} \times {\bf{4}}\) matrix Aand test whether \(\left( {A + I} \right)\left( {A - I} \right) = {A^2} - I\). The best way to do this is to compute \(\left( {A + I} \right)\left( {A - I} \right) - \left( {{A^2} - I} \right)\) and verify that this difference is the zero matrix. Do this for three random matrices. Then test \(\left( {A + B} \right)\left( {A - B} \right) = {A^2} - {B^{\bf{2}}}\) the same way for three pairs of random \({\bf{4}} \times {\bf{4}}\) matrices. Report your conclusions.

See all solutions

Recommended explanations on Math Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free