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Linear AlgebraChallengeDiagonalization & Matrix Powers

Diagonalization & Matrix Powers · Challenge problem

An economy has two sectors; producing one unit of sector jj's output requires AijA_{ij} units of input from sector ii, with A=(0.20.30.10.4)A = \begin{pmatrix}0.2 & 0.3\\0.1 & 0.4\end{pmatrix}. To meet an external demand of d=(10050)d = \begin{pmatrix}100\\50\end{pmatrix}, total output must satisfy x=Ax+d\mathbf x = A\mathbf x + \mathbf d, so x=(I−A)−1d\mathbf x = (I-A)^{-1}\mathbf d. Diagonalizing AA (whose eigenvalues are 0.50.5 and 0.10.1) makes (I−A)−1(I-A)^{-1} easy to build. Find the total output of sector 1.