Suppose in a Heckscher-Ohlin model a country's output vector is x = (5,3,6), the world's output is X" - (1000,900,1000), the price vector is p= (5,2,3) and the commonly used input-output matrix is: where the first row describes labour coefficients, the second row describes land coefficient, and the third row describes capital coefficients, All countries have identical homothetic preferences and balanced trade. Find the country GDP. Answer:

Suppose in a Heckscher-Ohlin model a country's output vector is x = (5,3,6), the world's output is X" - (1000,900,1000), the price vector is p= (5,2,3) and the commonly used input-output matrix is: where the first row describes labour coefficients, the second row describes land coefficient, and the third row describes capital coefficients, All countries have identical homothetic preferences and balanced trade. Find the country GDP. Answer:

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.7P

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