Refer to Exercise. Interpret the significance of the second and third columns of (I − A)−1...

Refer to Exercise. Interpret the significance of the second and third columns of (I − A)−1.

Consider the matrix (I − A)−1 from Example 1. Show that if the final demand for coal is increased by $1 billion, then the additional amounts (in billions of dollars) that must be produced by each of the three industries is given by the first column of (I − A)−1.

Technology Exercises

In Exercises 1 and 2, use the input output matrix A and the final-demand matrix D to find the production matrix X for the open Leontieff model. Round your answers to two decimal places.

Exercise 1

In Exercises, use the input output matrix A and the final-demand matrix D to find the production matrix X for the open Leontieff model. Round your answers to two decimal places.

Exercise 2

In Exercises, use the input output matrix A and the final-demand matrix D to find the production matrix X for the open Leontieff model. Round your answers to two decimal places.