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An economy has the following total transactions input-output matrix: Agricul. Mining Manufacturing Services Agriculture 1.40 0.10 0.40 0.30 Mining 0.30 1.20 0.30 0.20 Manufacturing 0.40
An economy has the following total transactions input-output matrix: Agricul. Mining Manufacturing Services Agriculture 1.40 0.10 0.40 0.30 Mining 0.30 1.20 0.30 0.20 Manufacturing 0.40 0.30 1.60 0.30 Services 0.40 0.50 0.50 1.30 Say exports of mining rise by $ 700 billion. What will be the increase in production in each industry? In the economy (GDP) as a whole? Calculate the industry multipliers for agriculture and manufacturing. c. What did you assume about prices in using the input-output matrix
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