9 Suppose the input-output structure of Country X looks like this: Input-output table of Country X Sectors and value added Raw materials Metal products Food & clothing Raw Metal materials products 7 3 0 Intermediate users 242 4 2 953 Food & clothing 6 3 0 Wages & salaries Gross profits Indirect (business) taxes Totals (a) Compute the total (gross) output of each industry on both the output side and the input side. (b) Show that GDP equals total final demand and also total value added. 11 Final demand 152 Consumption Investment Government Totals 2 13 21 0 0 0
9 Suppose the input-output structure of Country X looks like this: Input-output table of Country X Sectors and value added Raw materials Metal products Food & clothing Raw Metal materials products 7 3 0 Intermediate users 242 4 2 953 Food & clothing 6 3 0 Wages & salaries Gross profits Indirect (business) taxes Totals (a) Compute the total (gross) output of each industry on both the output side and the input side. (b) Show that GDP equals total final demand and also total value added. 11 Final demand 152 Consumption Investment Government Totals 2 13 21 0 0 0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:9 Suppose the input-output structure of Country X looks like this:
Input-output table of Country X
Sectors and
value added
Raw materials
Metal products
Food & clothing
Wages & salaries
Gross profits
Indirect (business)
taxes
Totals
Raw
Food &
Metal
materials products clothing
7
3
0
8
Intermediate users
342
960
953
6
0
11
152
Final demand
Consumption Investment Government Totals
2
0
13
5
21
0
644
0
(a) Compute the total (gross) output of each industry on both the output side and the input side.
(b) Show that GDP equals total final demand and also total value added.
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