A simplified version of Leontief's analysis of the 1947 American 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 2.9 Suppose the demand matrix (in billions of dollars) is D 32 34 Find the amount of each commodity that should be produced Agriculture = Manufacturing - Households =

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Q: 2. Estimate Y = +&X+ e using matrix method. 15 15 20 30 32 35 40 Y 14 13 16 25 27 34 44

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Q: A=  0 0.3 0.25 0.1     D=  3 4

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