Assume the following input-output table for a local economy:

Purchasing Industry A B Final Demand Gross Output Producing A 10 50 40 100 Industry B 30 10 30 70 Value Added 60 10 Total Inputs 100 70 70 170 Assume that value added is entirely attributable to local labor and capital inputs.

a. What are the direct input (technical) coefficients?

b. What is gross output, and how are the figures obtained?

c. Write the model in equation form as shown in Section I.

d. Assume that final demand is now A ¼ 50 and B ¼  30.

Recalculate the entire table. What is the multiplier implied by these results?

e. You will note that final demand does not include separate entries for exports outside the urban area. Does this urban area export anything? How do you know?