An economy has four sectors: Agriculture, Manufacturing, Services, and Transportation. Agriculture sells 20% of its output to Manufacturing, 30% to Services, 30% to Transportation, and retains the rest. Manufacturing sells 35% of its output to Agriculture, 35% to Services, 20% to Transportation, and retains the rest. Services sells 10% of its output to Agriculture, 20% to Manufacturing, 20% to Transportation, and retains the rest. Transportation sells 20% of its output to Agriculture, 30% to Manufacturing, 20% to Services, and retains the rest. a) Construct the exchange table for this economy. b) Find a set of equilibrium prices for the economy if the value of Transportation is $10.00 per unit.

An economy has four sectors: Agriculture, Manufacturing, Services, and Transportation. Agriculture sells 20% of its output to Manufacturing, 30% to Services, 30% to Transportation, and retains the rest. Manufacturing sells 35% of its output to Agriculture, 35% to Services, 20% to Transportation, and retains the rest. Services sells 10% of its output to Agriculture, 20% to Manufacturing, 20% to Transportation, and retains the rest. Transportation sells 20% of its output to Agriculture, 30% to Manufacturing, 20% to Services, and retains the rest. a) Construct the exchange table for this economy. b) Find a set of equilibrium prices for the economy if the value of Transportation is $10.00 per unit.

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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