Using the transactions table provided (in millions of dollars), build an Input- Output model for a...
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Using the transactions table provided (in millions of dollars), build an Input- Output model for a ten-sector economy that can calculate the direct, indirect, and total economic effects given a set of final sector demands (this can be done in Excel, Matlab, or any software application you choose). 1 2 3 4 6 7 8 9 10 450 200 795 485 592 154 827 91 148 100 600 486 689 145 178 245 884 981 427 3 350 478 14 362 698 458 752 643 695 569 10 653 683 758 154 548 784 837 226 260 907 297 795 42 674 46 351 48 378 899 340 586 485 159 268 212 596 85 622 978 80 94 154 816 670 125 444 748 533 648 571 513 956 876 546 277 125 76 903 587 548 58 358 298 268 972 821 495 29 769 691 1256 293 428 709 923 40 787 158 258 1 2 4 5 6 7 8 9 10 5 305 where, Sector 1 is Agriculture, Sector 2 is Mining, Sector 3 in Utilities, Sector 4 is Construction, Sector 5 is Manufacturing, Section 6 is Retail, Sector 7 is Finance, Sector 8 is Health Care, Sector 9 is Education, Sector 10 is Accommodation and Food Services. where, Sector 1 is Agriculture, Sector 2 is Mining, Sector 3 in Utilities, Sector 4 is Construction, Sector 5 is Manufacturing, Section 6 is Retail, Sector 7 is Finance, Sector 8 is Health Care, Sector 9 is Education, Sector 10 is Accommodation and Food Services. (a) Describe in words what the values of [1,1], [1,4], and [6,1] in the table above represent. The final demand for the economy is comprised of the following purchases: Sector 1 Final Demand = $7.8 million Sector 2 Final Demand = $49.6 million Sector 3 Final Demand = $13.5 million Sector 4 Final Demand = $48.9 million Sector 5 Final Demand = $65.7 million Sector 6 Final Demand = $5.3 million Sector 7 Final Demand = $26.8 million Sector 8 Final Demand = $0.4 million Sector 9 Final Demand = $89.3 million Sector 10 Final Demand = $14.5 million (b) What are the direct requirements from each economic sector in response to meeting the final demand? (c) What are the total requirements from each economic sector in response to meeting the final demand? (d) Briefly discuss why these are different? Are the direct or indirect requirements greater? By how much? (e) What happens to the total requirements from each economic sector in response to half of the final demand from each sector? What happens in response to doubling the final demand from each sector? (f) For the economy modeled in Problem 4, how much labor employment, intellectual property, profit, etc. were provided to the economy in terms of millions of dollars for each economic sector? (g) For the economy modeled in Problem 4, if you are a city planner and decide to purchase $4.5million in construction services, what is the total economic impact in the economy? Using the transactions table provided (in millions of dollars), build an Input- Output model for a ten-sector economy that can calculate the direct, indirect, and total economic effects given a set of final sector demands (this can be done in Excel, Matlab, or any software application you choose). 1 2 3 4 6 7 8 9 10 450 200 795 485 592 154 827 91 148 100 600 486 689 145 178 245 884 981 427 3 350 478 14 362 698 458 752 643 695 569 10 653 683 758 154 548 784 837 226 260 907 297 795 42 674 46 351 48 378 899 340 586 485 159 268 212 596 85 622 978 80 94 154 816 670 125 444 748 533 648 571 513 956 876 546 277 125 76 903 587 548 58 358 298 268 972 821 495 29 769 691 1256 293 428 709 923 40 787 158 258 1 2 4 5 6 7 8 9 10 5 305 where, Sector 1 is Agriculture, Sector 2 is Mining, Sector 3 in Utilities, Sector 4 is Construction, Sector 5 is Manufacturing, Section 6 is Retail, Sector 7 is Finance, Sector 8 is Health Care, Sector 9 is Education, Sector 10 is Accommodation and Food Services. where, Sector 1 is Agriculture, Sector 2 is Mining, Sector 3 in Utilities, Sector 4 is Construction, Sector 5 is Manufacturing, Section 6 is Retail, Sector 7 is Finance, Sector 8 is Health Care, Sector 9 is Education, Sector 10 is Accommodation and Food Services. (a) Describe in words what the values of [1,1], [1,4], and [6,1] in the table above represent. The final demand for the economy is comprised of the following purchases: Sector 1 Final Demand = $7.8 million Sector 2 Final Demand = $49.6 million Sector 3 Final Demand = $13.5 million Sector 4 Final Demand = $48.9 million Sector 5 Final Demand = $65.7 million Sector 6 Final Demand = $5.3 million Sector 7 Final Demand = $26.8 million Sector 8 Final Demand = $0.4 million Sector 9 Final Demand = $89.3 million Sector 10 Final Demand = $14.5 million (b) What are the direct requirements from each economic sector in response to meeting the final demand? (c) What are the total requirements from each economic sector in response to meeting the final demand? (d) Briefly discuss why these are different? Are the direct or indirect requirements greater? By how much? (e) What happens to the total requirements from each economic sector in response to half of the final demand from each sector? What happens in response to doubling the final demand from each sector? (f) For the economy modeled in Problem 4, how much labor employment, intellectual property, profit, etc. were provided to the economy in terms of millions of dollars for each economic sector? (g) For the economy modeled in Problem 4, if you are a city planner and decide to purchase $4.5million in construction services, what is the total economic impact in the economy?
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Answer rating: 100% (QA)
The values in the table represent the total output in millions of dollars for each sector of the economy Heres a breakdown of what each value represents 11 represents the total output of Sector 1 Agri... View the full answer
Related Book For
Basic Business Statistics Concepts And Applications
ISBN: 9780132168380
12th Edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
Posted Date:
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