In a two-industry economy, it is known that industry I uses 10 cents of its own product and 60 cents of commodity II to produce a dollar’s worth of commodity I; industry II uses none of its own product but uses 50 cents of commodity I in producing a dollar’s worth of commodity II; and the open sector demands $1000 billion of commodity I and $2000 billion of commodity II. (a) Write out the input matrix, the technology matrix, and the specific input-output matrix equation for this economy. (b) Find the solution output levels by Cramer’s rule
In a two-industry economy, it is known that industry I uses 10 cents of its own product and 60 cents of commodity II to produce a dollar’s worth of commodity I; industry II uses none of its own product but uses 50 cents of commodity I in producing a dollar’s worth of commodity II; and the open sector demands $1000 billion of commodity I and $2000 billion of commodity II. (a) Write out the input matrix, the technology matrix, and the specific input-output matrix equation for this economy. (b) Find the solution output levels by Cramer’s rule
Chapter1: Making Economics Decisions
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In a two-industry economy, it is known that industry I uses 10 cents of its own product and 60 cents of commodity II to produce a dollar’s worth of commodity I; industry II uses none of its own product but uses 50 cents of commodity I in producing a dollar’s worth of commodity II; and the open sector demands $1000 billion of commodity I and $2000 billion of commodity II.
(a) Write out the input matrix, the technology matrix, and the specific input-output matrix equation for this economy.
(b) Find the solution output levels by Cramer’s rule
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