Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello guys i need help with this question please!! 5. (20 pts) Consider an economy with three sectors: 1) Information Techonology, 2) Manufacturing, and 3)

Hello guys i need help with this question please!! image text in transcribed
5. (20 pts) Consider an economy with three sectors: 1) Information Techonology, 2) Manufacturing, and 3) Research and Development. We have the following informa- tion: Information Techonology sells 30% of its output to Manufacturing, 20% to Research and Development, and keeps the rest in itself. Manufacturing sells 20% of its output to Information Techonology, 20% to Research and Development, and keeps the rest in itself. Research and Development sells 10% of its output to Information Techonology, 20% to Manufacturing, and keeps the rest in itself. a) Construct the exchange table for this economy. b) Develop a system of equations that leads to prices at each sector's income matches its expenses and find its equilibrium solution. c) Find equilibrium prices when the price for Services output is 1000 dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Systems

Authors: Ronald W. Hilton, David E. Platt

10th Edition

1308172486, 978-1308172484

More Books

Students also viewed these Accounting questions