Consider an economy divided into an agricultural sector (A) and an indus- trial sector (I). To produce one unit in sector A requires 1/4 unit from A and 1/4 unit from I. To produce one unit in sector I requires 1/6 unit from A and 1/4 unit from I. Suppose that final demands are 100 units of out put from sector A and 80 units of output from sector I. (a) this economy. (b) Find the number of units that has to be produced in each sector in order to meet the specified final demands. Write down the equation system for

Consider an economy divided into an agricultural sector (A) and an indus- trial sector (I). To produce one unit in sector A requires 1/4 unit from A and 1/4 unit from I. To produce one unit in sector I requires 1/6 unit from A and 1/4 unit from I. Suppose that final demands are 100 units of out put from sector A and 80 units of output from sector I. (a) this economy. (b) Find the number of units that has to be produced in each sector in order to meet the specified final demands. Write down the equation system for

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 3PA

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