The following problem refers to a closed Leontief model. Suppose the technology matrix for a closed model of a simple economy is given by the following. P M H A = 0.5 0.1 0.8 0.1 0.3 0 0.4 0.6 0.2 Products Machinery Households Find the gross productions for the industries. (Let H represent the number of household units produced, and give your answers in terms of H.) products 1.53H units machinery .23H units households H units

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter9: Systems Of Equations And Inequalities
Section: Chapter Questions
Problem 21T
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The following problem refers to a closed Leontief model.

Suppose the technology matrix for a closed model of a simple economy is given by the following.

   
P     M     H
 
A = 
 
0.5   0.1   0.8
0.1   0.3   0
0.4   0.6   0.2
 
  
Products
Machinery
Households

Find the gross productions for the industries. (Let H represent the number of household units produced, and give your answers in terms of H.)

products    
1.53H
 
 
  units
machinery    
.23H
 
 
  units
households    
H
 
 
  units
Expert Solution
Step 1

The given matrix is 

A=0.50.10.80.10.300.40.60.2

We have to find gross productions for the industries.

 

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