Question: PLEASE help! 1. Consider the following (incomplete) technology matrix for an economy consisting of 3 sectors: (1) finance, insurance, and real-estate, (2) professional and business
PLEASE help!

1. Consider the following (incomplete) technology matrix for an economy consisting of 3 sectors: (1) finance, insurance, and real-estate, (2) professional and business services, and (3) educational services, healthcare, and social assistance: 0.1997 A 0.1133 A= B 0.1645 C 0 D 0.0013 (a) [5 points] How many dollars of educational services, healthcare, and social assistance are needed to produce 1 dollar of finance, insurance, and real-estate services? (b) [5 points] Suppose that it takes $0.103 of professional and business services to produce $1 educational services, healthcare, and social assistance. Can we use this information to find one of the missing entries in the technology matrix? If so, give the letter for this entry and its value. (c) [10 points] The matrix (/ - A) for this economy is given by 1.3 0.1 0.2 (I-A) 0.1 1.2 0.1 0 0 How would this economy respond to a $1000 increase in demand in professional and busi- ness services and a $4000 increase in demand in educational services, healthcare, and social assistance? These increases in demand occur simultaneously
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
