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To study Kenya's economy, consider four sectors of the economy. {1) the traditional economy: (2} agriculture, (3) manufacture of metal products and machinery: and [4]
To study Kenya's economy, consider four sectors of the economy. {1) the traditional economy: (2} agriculture, (3) manufacture of metal products and machinery: and [4] wholesale and retail trade. The inputoutput table for these four sectors for 1976 looks like this (all numbers are 10005 of KSh (Kenyan Shillings]. 20, (no 530 810 Total Output 87, I000 530,000 110,000 | 180, 000 Suppose that external demand for agriculture increased by KSh.50,000, 000 and that external demand for metal products and machinery increased by KSh.10.. 000.. 000. How would production in these four sectors have to change to meet this rising demand? {Use the fact that Change in production: (I A)1D+, where A is the matrix of sectors and D the change in demand). Use excel or any other computer program to compute {I A]_1D+
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