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a11
A = 4 a21
a31
a12
a22
a32
3
a13
a23 5 ;
a33
3
x1
(b) [7 points] Show in detail how you would solve for the required output vector x = 4 x2 5 given
x3
3
2
d1
1
1
(I A)
so that (I A)
L =
the nal demand vector d = 4 d2 5 : Note: let L
d3
2
3
L11 L12 L13
4 L21 L22 L23 5 :
L31 L32 L33
(c) [6 points] Given
(I
A)
and
L11
L = 4 L21
L31
2
what will be
x1 and
d=4
L12
L22
L32
3
0
d2 5 ;
0
x3 in terms of Lij ; i; j = 1; 2; 3?
1 S.
Daway
1
B=4 0
0
0
0
0
3
0
0 5:
1
3
L13
L23 5 ;
L33
(a) [4 points] What conditions should be met in order for you to use either the eigenvalues or principal
minors method to determine the deniteness of B?
(b) [8 points] Determine the deniteness of B: Show your work.
3. [15 points] Prove the following for any n
(a) [8 points] If A is nonsingular, then
(b) [7 points] If
n matrix A:
= 0 cannot be an eigenvalue of A:
is an eigenvalue of A, then
is an eigenvalue of A2 :
; > 0;
(x1 ;x2 )
(x1 ;x2 )
and @ U@x
): What
(c) [5 points] Derive the second partial derivatives of U (x1 ; x2 ) (i.e., @ U@x
2
2
1
2
restrictions should be placed on and for U (x1 ; x2 ) to exhibit diminishing marginal utility?
e (e
(d) [5 points] Log-linearize U (x1 ; x2 ) : Let U
x1 ; x
e2 )
ln U (x1 ; x2 ) : What restrictions should be
placed on x1 and x2 ?
e (x1 ; x2 ) change if dx1 = dx2 = 2?
(e) [5 points] By how much will U
d2 y
dx2 :
(c) [15 points] Take a quadratic or second-order Taylors approximation of f (x) at x0 = 1: Write it
in the form ax2 + bx + c:
BONUS
[5 points] Free for all:
Given q (x1 ; x2 ) = 4x21
6x1 x2