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Consider the same two industry economy of paper and services. The services needed to produce paper products have been reduced. Now the production of 1

Consider the same two industry economy of paper and services. The services needed to produce paper products have been reduced. Now the production of 1 unit of paper products requires the consumption of .3 unit of paper products and only .2 unit of services. The production of 1 unit of services remains the same and requires the consumption of .4 unit of paper products and .2 unit of services. Find the gross output of goods needed to satisfy a consumer demand for $200 million worth of paper products and $450 million worth of services. What has happened?

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