An economy is based on three sectors, agriculture, manufacturing, and energy. Production ofa dollar's worth of agriculture requires inputs of $0.30 from agriculture, $0.30 from manufacturing, and$0.30 from energy. Production of a dollar's worth of manufacturing requires inputs of $0.30from agriculture, $0.30 from manufacturing, and $0.30 from energy. Production of a dollar's worth ofenergy requires inputs of $0.30 from agriculture, $0.40 from manufacturing, and $0.30 from energy.Find the output for each sector that is needed to satisfy a final demand of $30 billion for agriculture,$63 billion for manufacturing, and $20 billion for energy.The output of the agricultural sector isbillion dollars.(Round the final answer to three decimal places as needed. Round all intermediate values to sixdecimal places as needed.)

Output for agriculture = ($30 billion)/($0.30) = $100 billionOutput for manufacturing = ($63…

Answered: An economy is based on three sectors,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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