Problems 914 pertain to the following inputoutput model: Assume that an economy is based on two industrial

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Problems 9–14 pertain to the following input–output model: Assume that an economy is based on two industrial sectors, agriculture (A) and energy (E). The technology matrix M and final demand matrices (in billions of dollars) are

A E A [0.4 0.2] E 0.2 0.1 8 D = [] D -[] = M D3 12

How much input from A and E are required to produce a dollar’s worth of output for A?  

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