Two sectors of some economy are Sector 1 and Sector 2. The input-output table involving these two sectors results in the following value for $$( I - A ) ^ { - 1 }$$ $$( I - A ) ^ { - 1 } = \left[ \begin{array} { c c }
1.21 & 0.155 \
0.002 & 1.1242
\end{array} \right]$$
How many additional dollars worth of production of Sector 2 must be produced to meet a $1 increase in the demand for products of Sector 1

A)$1.1242
B) $0.9692
C) $0.002
D) $1.21
E) $0.155

Question

Two sectors of some economy are Sector 1 and Sector 2. The input-output table involving these two sectors results in the following value for $$( I - A ) ^ { - 1 }$$     $$( I - A ) ^ { - 1 } = \left[ \begin{array} { c c } 
1.21 & 0.155 \
0.002 & 1.1242
\end{array} \right]$$  
How many additional dollars worth of production of Sector 2 must be produced to meet a $1 increase in the demand for products of Sector 1 
 
A)$1.1242
B) $0.9692
C) $0.002
D) $1.21
E) $0.155

Quizplus · Accepted Answer

The Answer of Two sectors of some economy are Sector 1 and Sector 2. The input-output table involving these two sectors results in the following value for $$( I - A ) ^ { - 1 }$$     $$( I - A ) ^ { - 1 } = \left[ \begin{array} { c c } 
1.21 & 0.155 \
0.002 & 1.1242
\end{array} \right]$$  
How many additional dollars worth of production of Sector 2 must be produced to meet a $1 increase in the demand for products of Sector 1 
 
A)$1.1242
B) $0.9692
C) $0.002
D) $1.21
E) $0.155

Two Sectors of Some Economy Are Sector 1 and Sector (I−A)−1( I - A ) ^ { - 1 }(I−A)−1

Two Sectors of Some Economy Are Sector 1 and Sector $( I - A ) ^ { - 1 }$