Use the matrices below to calculate both the first two rounds of effects on output in the region of a $1 exogenous increase in final demand for Good X and the corresponding total (multiplier) effect on output in the region.

(I-A) Industry X Industry Y Industry Z
Industry X 1.00 -0.10 -0.20
Industry Y -0.20 1.00 -0.30
Industry Z -0.30 -0.40 1.00


(I-A)-1
Industry X Industry Y Industry Z
Industry X 1.14 0.23 0.30
Industry Y 0.37 1.21 0.44
Industry Z 0.49 0.55 1.26

Answer rating: 100% (QA)

1 The first two rounds of effects on output in the region of a 1 exogenous increase in final demand ... View the full answer