Economic models as an application of Linear Algebra

In this blog we will discuss about what is Economic model it's applications in Linear Algebra and also discuss it's applications in Eigenvalues and Eigenvectors and talk about what makes good in economic model and How to construct this model and also discuss about why Economic models Fail   What is Economic Model? Economic model a hypothetical construct that embodies economic procedures using a set of variables in logical and quantitative correlations. Economic models are simplified representations  of Economic Phenomena. They allow the design of Economic policies. They allow the diagnosis of Economic Phenomena and the forecast of future behavior of variables. Economic model as an application of Linear Algebra   Linear Regression: Linear regression is a statistical  method used to study the relationship between two or more variables. It is commonly used to predict a numerical value (dependent variable) based on one or more other variables (independent variables)...