The fundamental purpose of I-O framework is to analyze the interdependence of industries in an economy. I-O can provide important and timely information on the interrelationships in a regional economy and the impacts of changes on that economy.
Multipliers measure the response of the economy to a change in demand or production.
In the open effect , the direct and indirect effects would be found by elements of the Leontief Inverse matrix, this multiplier is also known as a simple multplier. In the case of a closed model, the Leontief inverse matrix would provide the direct, indirect, and induced multipliers, this is called a total multiplier.