SOLVED: The input-output matrix for a simplified economy with just three sectors (agriculture, manufacturing, and households) is given to the right.Agriculture Manufacturing HouseholdsAgriculture 0.26 0.42 0.111Manufacturing 0.12 0.11 0.134Households 0.77 3.54 0.112What production levels are needed to meet the demand in agriculture, manufacturing, and households, respectively, given the demand matrix shown at the right?D
SOLVED: The input-output matrix for a simplified economy with just …
Dec 1, 2021
numerade.com
Consider an input-output model with three sectors. Sector 1 is heavy industry, sector 2 is light industry, and sector 3 is agriculture. The input requirements are given by the following table:Suppose the final demands for the three goods are 85,95 , and 20 units, respectively. If x1, x2, and x3 denote the number of units that have to be produced in the three sectors, write down the Leontief system for the problem. Verify that x1=150, x2=200, and x3=100 is a solution. | Numerade
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