A simplified version of input-output analysis of a national economy has the following input-output matrix: Agriculture Manufacturing Households Agriculture 0.245 0.102 0.051 Manufacturing 0.099 0.291 0.279 Households 0.433 0.372 0.011 A. units of Agriculture are need to produce one unit of Households B. Given Demand (in billions of dollars) for the three sectors are as follows 29.8= Manufacturing, 3.5-Agriculture 29.7-Households Find the amount of each commodity that should be produced (nearest 0.1 billion) Agriculture Manufacturing = Households C. If the external demand of Households raises by $1 billion then manufacturing production needs to increase by $ billion (nearest 0.01) in order to meet that increase in household external demand

A simplified version of input-output analysis of a national economy has the following input-output matrix: Agriculture Manufacturing Households Agriculture 0.245 0.102 0.051 Manufacturing 0.099 0.291 0.279 Households 0.433 0.372 0.011 A. units of Agriculture are need to produce one unit of Households B. Given Demand (in billions of dollars) for the three sectors are as follows 29.8= Manufacturing, 3.5-Agriculture 29.7-Households Find the amount of each commodity that should be produced (nearest 0.1 billion) Agriculture Manufacturing = Households C. If the external demand of Households raises by $1 billion then manufacturing production needs to increase by $ billion (nearest 0.01) in order to meet that increase in household external demand

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section8.A: National Income Accounting

Problem 2TY

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