4. Consider the following input-output table for a certain economy consisting of three sectors (all units measured in dollars): Farm Machinery Farm Animals Labor Hours 200,000 6,000 1,200 9,000 13,500 14,000 Farm Machinery Farm Animals Labor Hours Total Output 7,200 50,000 31,000 450,000 175,000 130,000 (a) Find the technology matrix associated with this economy. Round cach entry to 3 decimal places. (b) The matrix (I-A)-1 is given by [3.2 2.4 1.2] (I – A)- =0 1.1 2.2 0.1 0.7 1.5 What production levels are necessary in order to meet a 1,000 unit demand in both farm machinery and farm animals? You may assume that there is no external demand for labor hours at this time.

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4. Consider the following input-output table for a certain economy consisting of three
sectors (all units measured in dollars):
Farm Machinery Farm Animals Labor Hours
9,000
200,000
14,000
Farm Machinery
Farm Animals
13,500
31,000
175,000
7,200
50,000
130,000
6,000
Labor Hours
1,200
Total Output
450,000
(a) Find the technology matrix associated with this economy. Round cach entry to 3
decimal places.
(b) The matrix (I – A)-1 is given by
[3.2 2.4 1.2]
(I – A)-! =
1.1 2.2
%3D
0.1 0.7 1.5
What production levels are necessary in order to meet a 1,000 unit demand in
both farm machinery and farm animals? You may assume that there is no external
demand for labor hours at this time.
Transcribed Image Text:4. Consider the following input-output table for a certain economy consisting of three sectors (all units measured in dollars): Farm Machinery Farm Animals Labor Hours 9,000 200,000 14,000 Farm Machinery Farm Animals 13,500 31,000 175,000 7,200 50,000 130,000 6,000 Labor Hours 1,200 Total Output 450,000 (a) Find the technology matrix associated with this economy. Round cach entry to 3 decimal places. (b) The matrix (I – A)-1 is given by [3.2 2.4 1.2] (I – A)-! = 1.1 2.2 %3D 0.1 0.7 1.5 What production levels are necessary in order to meet a 1,000 unit demand in both farm machinery and farm animals? You may assume that there is no external demand for labor hours at this time.
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