Application of Cramer’s Rule in Economics for Determining National Income, National Consumption and Tax Revenue

Abstract

The theory of matrices emerges as a valuable mathematical tool in addressing pressing economic issues, offering practical solutions to complex problems. By leveraging the power of matrix theory, a broad spectrum of challenging economic dilemmas can be effectively resolved. This study delves into the practical implementation of Cramer’s rule within the realm of economics, particularly in the determination of pivotal variables such as national income, consumption patterns, and tax revenue allocation. The empirical findings underscore the efficiency of Cramer’s rule, demonstrating its capacity to yield precise solutions while alleviating the burden of laborious computational tasks. This paper illuminates the significant impact of leveraging mathematical frameworks, like Cramer’s rule, in streamlining economic analyses and enhancing decision-making processes. The intricate interplay between mathematical methodologies and economic analyses underscores the transformative potential of applying rigorous mathematical principles in real-world economic scenarios. Through a meticulous examination of Cramer’s rule applications, this research contributes to a deeper understanding of how mathematical tools can refine economic models and facilitate strategic policy-making. Ultimately, the seamless integration of matrix theory and economic theories not only optimizes analytical outcomes but also fosters innovation and efficiency in addressing economic challenges on a broader scale.