Suppose that a simple economy consists of three sectors: Sector X, Y and Z. Given theinput-output table below for the 3 sectors.Sector XSector YSector ZExternal DemandSector X0.40.672Sector Y0.40.30.2150Sector Z0.10.458 (a) Interpret the value 0.6 that is greyed out in the table.(b) To output a unit of Sector Z, how many units of Sector X is required?(b) By using the Leontief Input-Output Model, determine the production levelsnecessary to statisfy the final demand.

Given Information:Simple economy of input-output analysis is as follows:Sector XSector YSector…

Answered: (a) Interpret the value 0.6 that is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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(a) Interpret the value 0.6 that is greyed out in the table. (b) To output a unit of Sector Z, how many units of Sector X is required? (b) By using the Leontief Input-Output Model, determine the production levels necessary to statisfy the final demand.