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The input-output matrix of three industries X, Y and Z is given below as: [0.2 0.3 0.2] A= 0.4 0.1 0.3 0.3 0.5 0.2

 

The input-output matrix of three industries X, Y and Z is given below as: [0.2 0.3 0.2] A= 0.4 0.1 0.3 0.3 0.5 0.2 Assume that the industries operate in an open economic system with external demand given by the [150] matrix B= 260. Assume also that the output industries (X, Y and Z) are represented by the three 210 columns and the input industries (X, Y and Z) are also represented by the three rows of the input- 1 output matrix given above. a. Using the information given above, give an economic interpretation for each of the 9 elements of the input-output matrix A. [9 marks] b. Using the Cramer's Rule, determine the total demand for industry X. [6 marks]

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