Abstract

In this chapter we discuss the notions of proportionality, linear and affine functions, and homogeneity. The matrix algebra is introduced to explain some linear, economic models (Leontieff, von Neumann). We discuss systems of linear equations and their solution in full detail. For this we need determinants, Cramer’s rule, and the inverse matrix. Further we discuss the Gauss algorithm. We finish introducing functions of vector variables to explain aggregation in economics.

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