A certain economy consibt ing of the two sectors of goods and servicessupports a defense system that consumes $90 billion wort h of goods and$20 billion worth of services from the economy but does not contributeto economic production. Suppose that 50 cents worth of goods and 20cents worth of services are required to produce $1 wort h of goods andthat 30 cents worth of goods and 60 cents worth of services are requiredto produce $1 wort h of services. ·what must the total output of theeconomic system be to support this defense system?
A certain economy consibt ing of the two sectors of goods and servicessupports a defense system that consumes $90 billion wort h of goods and$20 billion worth of services from the economy but does not contributeto economic production. Suppose that 50 cents worth of goods and 20cents worth of services are required to produce $1 wort h of goods andthat 30 cents worth of goods and 60 cents worth of services are requiredto produce $1 wort h of services. ·what must the total output of theeconomic system be to support this defense system?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A certain economy consibt ing of the two sectors of goods and services
supports a defense system that consumes $90 billion wort h of goods and
$20 billion worth of services from the economy but does not contribute
to economic production. Suppose that 50 cents worth of goods and 20
cents worth of services are required to produce $1 wort h of goods and
that 30 cents worth of goods and 60 cents worth of services are required
to produce $1 wort h of services. ·what must the total output of the
economic system be to support this defense system?
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