A closed model for an economy has a manufacturing industry, utilities industry, and households industry. Each unit
Question:
A closed model for an economy has a manufacturing industry, utilities industry, and households industry. Each unit of manufacturing output uses 0.5 unit of manufacturing input, 0.4 unit of utilities input, and 0.1 unit of households input. Each unit of utilities output requires 0.4 unit of manufacturing input, 0.5 unit of utilities input, and 0.1 unit of households input. Each unit of household output requires 0.3 unit each of manufacturing and utilities input and 0.4 unit of households input.
(a) Write the technology matrix for this closed model of the economy.
(b) Find the gross production for each industry.
Problems refer to closed Leontief models?
Step by Step Answer:
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds