A simplified version of input-output analysis of a national economy has the following input-output matrix: Agriculture Manufacturing Households Agriculture 0.245 0.102 0.051 Manufacturing 0.099 0.291 0.279 Households 0.433 0.372 0.011 A. units of Households are need to produce one unit of Agriculture B. Given Demand (in billions of dollars) for the three sectors are as follows 2.5=Agriculture 33.1 Manufacturing, 32.5=Households Find the amount of each commodity that should be produced (nearest 0.1 billion) Agriculture Manufacturing Households C. If the external demand of Households raises by $1 billion then manufacturing production needs to increase by $ billion (nearest 0.01) in order to meet that increase in household external demand

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