The economy of a small country consists of two sectors: Energy and Transportation. For each $1 worth of output, the Energy sector requires $0.60 worth of input from the Energy sector and $0.20 worth of input from the Transportation sector. For each $1 worth of output, the Transportation sector requires $0.80 worth of input from the Energy sector and $0.10 worth of input from the Transportation sector. What level of output should each sector produce in order to meet a consumer demand of $1 million worth of Energy and $2 million worth of Transportation?

The economy of a small country consists of two sectors: Energy and Transportation. For each $1 worth of output, the Energy sector requires $0.60 worth of input from the Energy sector and $0.20 worth of input from the Transportation sector. For each $1 worth of output, the Transportation sector requires $0.80 worth of input from the Energy sector and $0.10 worth of input from the Transportation sector. What level of output should each sector produce in order to meet a consumer demand of $1 million worth of Energy and $2 million worth of Transportation?

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 6SQP

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