Chapter 2.6, Problem 20E

(a)

To determine

The input-output matrix A if there is two sector economy which consists of transportation and energy. Transportation requires input of $\$0.25$ from transportation and $\$0.20$ from energy for $\$1$ and energy requires input of $\$0.30$ from transportation and $\$0.15$ from energy for $\$1$.

(b)

To determine

The matrix ${\left(I-A\right)}^{-1}$ if there is two sector economy which consists of transportation and energy. Transportation requires input of $\$0.25$ from transportation and $\$0.20$ from energy for $\$1$ and energy requires input of $\$0.30$ from transportation and $\$0.15$ from energy for $\$1$.

(c)

To determine

To calculate: The levels at which various industries produce if the demand for transportation and energy is worth $\$4\text{ billion}$ and $\$7\text{ billion}$ where $\left[\begin{array}{cc}0.25& 0.30\\ 0.20& 0.15\end{array}\right]=A$.

(d)

To determine

To calculate: The amount of output of each sector is used to meet internal consumption if the demand for transportation and energy is worth $\$4\text{ billion}$ and $\$7\text{ billion}$ where $\left[\begin{array}{cc}0.25& 0.30\\ 0.20& 0.15\end{array}\right]=A$.