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Please answer these questions. Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its output to Services and
Please answer these questions.
Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its output to Services and and keeps the rest, while Services sells 70% of its output to Goods and retains the rest. Find equilibrium prices for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures. Assume that the price of the total output of the economy is $1,000,000,000. Give your answers in dollars, with at least four significant figures. The equilibrium price of the Goods sector is $750000000 The equilibrium price of the Services sector is $700000000 Consider an economy with three sectors: Fuels and Power, Manufacturing, and Services. Fuels and Power sells 80% of its output to Manufacturing, 10% to Services, and retains the rest. Manufacturing sells 15% of its output to Fuels and Power, 75% to Services, and retains the rest. Services sells 25% to Fuels and Power, 35% to Manufacturing, and retains the rest. Find the equilibrium price for each sector. Assume the total economy is valued at $1,000,000,000 The equilibrium price of the Fuels and Power sector is The equilibrium price of the Manufacturing sector is The equilibrium price of the Services sector isStep by Step Solution
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