Either the following data for a 3-industrial economy, with 2 types of workers/households.

The Household 1 and Household 2 columns represent the consumption basket of each type of worker, while the other DF represents the consumption basket of the other components of final demand. To be clear, both types of households are considered endogenous in this model. Only the other final request is exogenous. The Intrant Work 1 and Intrant Work 2 lines represent the wages paid to each type of worker by each industry and each component of final demand.
A) The following vector gives us the share of the production of industries 1, 2 and 3 and labour inputs 1 (LI1) and 2 (LI2) that are consumed by all households.

## [1] "share of the production of ind 1, 2, 3, LI1 & LI2 consumed by households"

## [1] 0.29870130 0.20000000 0.48989899 0.04275534 0.06751055

Based on this information, calculated the other final demand for the production of industries 1, 2 and 3.

B) The following vector gives us the share of the total expenditure paid in input work by each of industries 1, 2 and 3

## [1] "Work input share in industries 1, 2 and 3"

## [1] 0.5350649 0.3363636 0.4090909

Based on this information, calculate the other added value in industries 1, 2 and 3.

C) The following vector gives the share of the input labour expenditure that is paid to workers type 1, LI1, by industries 1, 2 and 3 respectively.
## [1] "share of input labour expenditure paid to LI1 by industries 1,2 and 3"

## [1] 0.5631068 0.4324324 0.3209877

Based on this information, calculated the total input labour expenditure LI1 and LI2 for each of the industries 1,2 and 3 respectively.

D) Taking into account the information obtained in a), b) and c), find the other final applications for LI1 and LI2.
E) The following vector gives us the share of total household expenditure for the production of industries 1,2 and 3, as well as for LI1 and LI2, which is attributable to type 1 households.

## [1] "share of total household consumption in the production of industries 1, 2, 3, LI1 and LI2 at

## [1] 0.4000000 0.7000000 0.5000000 0.3333333 0.1562500
Based on this information, calculate how much each type of household consumes for the production of industries 1,2 and 3, as well as for LI1 and LI2.

F) Assume that there are 20 type 1 households and 15 type 2 households. What is the average income per household for each type of household? What is the difference, in percentage, between the average income of the richest households and the average income of the least wealthy households? This percentage difference is a measure of income inequality.

G) Suppose that the government decides to put in place a tax measure so that the other final demand for the production of Industry 1 increases by 10 per cent. What will be the change in the wages earned by each type of worker (LI1 and LI2) that will result from this tax policy?

H) Instead, suppose that the government implements an alternative policy, so that it is the other final demand for the production of industry 2 that increases by an amount equivalent to the increase of the other final demand for the production of industry 1 found in g) (for example, if the other final demand for the production of industry 1 increased by 30 in g), then now it is the other demand for the production of industry 2 that increases by 30). What will be the change in the wages earned by each type of worker (LI1 and LI2) that will result from this alternative tax policy?
I) Given your results in g) and h), what tax policy should the government put in place if it seeks to reduce tax inequalities? How do you explain this result?

012 2 3 1 2 3 212 135 38 66 165 99 Household1 Household2 Other DP Production 18 30 72 Labour input1 Labour input2 Other addedvalue Totalexpenditure 770 550 396 421 474 517