Question
An economy has the following total transactions input-output matrix: Agricul.MiningManufacturingServices Agriculture1.400.100.400.30 Mining0.301.200.300.20 Manufacturing0.400.301.600.30 Services0.400.500.501.30 (a)Say exports of manufacturing rise by $ 800 billion. What will
An economy has the following total transactions input-output matrix:
Agricul.MiningManufacturingServices
Agriculture1.400.100.400.30
Mining0.301.200.300.20
Manufacturing0.400.301.600.30
Services0.400.500.501.30
(a)Say exports of manufacturing rise by $ 800 billion. What will be the increase in production in each industry? In the economy (GDP) as a whole?
(b)Calculate the industry multipliers for agriculture and services.
c.) What did you assume about prices in using the input-output matrix?
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International Management Culture, Strategy and Behavior
Authors: Fred Luthans, Jonathan Doh
10th edition
1259705072, 1259705076, 978-1259705076
