Rework Exercise 19 under the condition that the consumer demand for transportation is $4 billion and the
Question:
A simplified economy consists of the two sectors Transportation and Energy. For each $1 worth of output, the transportation sector requires $.25 worth of input from the transportation sector and $.20 of input from the energy sector. For each $1 worth of output, the energy sector requires $.30 from the transportation sector and $.15 from the energy sector.
(a) Give the input-output matrix A for this economy.
(b) Determine the matrix (I - A)-1. (Round entries to two decimal places.)
(c) What level of output should each sector produce to meet a consumer demand for $5 billion worth of transportation and $3 billion worth of energy?
(d) How much of the output of each sector is used to meet internal consumption?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
Question Posted: