Economic

The following problem refers to a closed Leontief model. A closed model for an economy identifies government, the profit sector, the nonprofit sector, and households as its industries. Each unit of government output requires 0.3 unit of government input, 0.2 unit of profit sector input, 0.2 unit of nonprofit sector input, and 0.3 unit of households input. Each unit of profit sector output requires 0.2 unit of government input, 0.3 unit of profit sector input, 0.1 unit of nonprofit sector input, and 0.4 unit of households input. Each unit of nonprofit sector output requires 0.1 unit of government input, 0.1 unit of profit sector input, 0.2 unit of nonprofit sector input, and 0.6 unit of households input. Each unit of households output requires 0.05 unit of government input, 0.1 unit of profit sector input, 0.1 unit of nonprofit sector input, and 0.75 unit of households input. (a) Write the technology matrix 7 for this closed model of the economy. G p N H 0.3 0.2 0.1 0.05 Government 0.2 D.E 0.1 Profit Sector TE 0.2 0.2 Nonprofit sector 0.3 0.4 0.6 0.75 Households (b) Find the gross production for each industry. (Let # represent the number of household units produced, and give your answers in terms of H.) government units X profit sector units X nonprofit sector units X households units X