Chinese Economy The 1981 Chinese economy can be simplified to three sectors: agriculture, industry and construction, and transportation and commerce. The input-output matrix is given below. Source: Input-Output Tables of China, 1981.
The demand (in 100,000 RMB, the unit of money in China) is
(a) Find the amount of each commodity that should be produced.
(b) Interpret the economic value of an increase in demand of 1 RMB in agricultural exports.
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