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(1) Assume the following Input-Output Table depicts the inter-industrial relations of a city where, admittedly, people drink a lot of beer. | Producers Inputs Steel
(1) Assume the following Input-Output Table depicts the inter-industrial relations of a city where, admittedly, people drink a lot of beer. | Producers Inputs Steel Beer Local Households Exports Total (labor) Steel 3 0 200 0 20 10 10 40 Show the corresponding Input Coefcient Table (note, imports and export do not have to be identical). Households Inputs Steel Beer Local (labor) 0.1154 0.1250 0.0625 0.0000 Beer 0.1154 0.1250 0.1250 0.7059 Local 0.0385 0.0625 0.2500 0.1176 Labor 0.5769 0.5000 0.5000 0.1176 Imports 0.1538 0.1875 0.0625 0.0588 (2) Use the Input-Output Table above and suppose the beer industry enjoys a $ 100 increase in exports. Show the overall income increase in the steel industry, in the beer industry, for local businesses and the increase in labor income after 2 rounds (time periods). Note that this Table also shows intraindustrial trade. For instance, the steel industry also needs steel as an input. If the initial income impulse is $100, what is the overall income increase at Round 1, what is it at Round 2? Add up the all three numbers and calculate the overall income increase (This question requires some careful calculations). In these two rounds, how much has the initial impulse multiplied
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