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A simplified version of input-output analysis of a national economy has the following input-output matrix: Agriculture Manufacturing Households Agriculture Manufacturing Households 0.245 0.102 0.051 0.099
A simplified version of input-output analysis of a national economy has the following input-output matrix: Agriculture Manufacturing Households Agriculture Manufacturing Households 0.245 0.102 0.051 0.099 0.291 0.279 0.433 0.372 0.011 A. units of Agriculture are need to produce one unit of Households B. Given Demand (in billions of dollars) for the three sectors are as follows 35 = Manufacturing, 3.5=Agriculture 31.6=Households Find the amount of each commodity that should be produced (nearest 0.1 billion) Agriculture Manufacturing Households C. If the external demand of Households raises by $1 billion then manufacturing production needs to increase by $ billion (nearest 0.01) in order to meet that increase in household external demand
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