MBE Spring 2023

Exercise on matrix algebra: assignment 1

This is a practice assignment, on the basis of which I shall prepare your first quiz on next week Monday.

Question One:

For the following national income determination model, where Y= GDP, C=consumption expenditure,
Io= given constant value on investment expenditure, G= government spending, To is income tax
collected.

Here Y, C and G are endogenous variables. Answer the following questions.

1. Put the above equations in a matrix form Ax=d

2. Solve the equilibrium value of endogenous variables by using matrix inversion method
3. Solve the equilibrium value of endogenous variables by using Cramer’s Rule.
4. Find inverse by using r-programming

Question Two:

Find characteristic roots and vectors for the following matrix, and also perform Spectral decomposition
on the matrix.

A=
[ [ ]]
4 3
2 3

Verify the decomposition of the above matrix by using R-programming.