Problems 15 - 20 pertain to the following input-output model: Assume that an economy is based on three industrial sectors: agriculture A , building B . and energy E .The technology matrix M and final demand matrices (in billions of dollars) are A B E A B E 0.3 0.2 0.2 0.1 0.1 0.1 0.2 0.1 0.1 = M D 1 = 5 10 15 D 2 = 20 15 10 Find I − M .
Problems 15 - 20 pertain to the following input-output model: Assume that an economy is based on three industrial sectors: agriculture A , building B . and energy E .The technology matrix M and final demand matrices (in billions of dollars) are A B E A B E 0.3 0.2 0.2 0.1 0.1 0.1 0.2 0.1 0.1 = M D 1 = 5 10 15 D 2 = 20 15 10 Find I − M .
Solution Summary: The author explains the value of I-M and the identity matrix.
Problems
15
-
20
pertain to the following input-output model: Assume that an economy is based on three industrial sectors: agriculture
A
, building
B
. and energy
E
.The technology matrix
M
and final demand matrices (in billions of dollars) are
A
B
E
A
B
E
0.3
0.2
0.2
0.1
0.1
0.1
0.2
0.1
0.1
=
M
(a) The following diagram shows the movement of Kenyan households among
three income groups: affluent, middle class, and poor, over the 11-year
period 1980–1991.
AFFLUENT
27.1%
Sh72,000
(in 1994)
7.5%
MIDDLE CLASS
8.5%
Sh24,000
(in 1994)
30.4%
POOR
(i)
Use the transitions shown in the diagram to construct a transition
matrix (assuming zero probabilities for the transitions between
affluent and poor).
(ii)
Assuming that the trend shown was to continue, what percent of
households' classified as affluent in 1980 -1991, were predicted to
become poor in 1993?
(iii)
According to the model, what percentage of all Kenyan households
will be in each income bracket in the long term?
A simplified version of input-output analysis of a national economy has the following input-output matrix:
Agriculture Manufacturing Households
0.245
0.051
0.099
0.279
0.433
0.011
A.
Agriculture
Manufacturing
Households
0.102
0.291
0.372
units of Households are need to produce one unit of Manufacturing
B. Given Demand (in billions of dollars) for the three sectors are as follows
3.4-Agriculture 31 = Manufacturing, 34-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
billion (nearest 0.01) in order to meet that increase in household external
increase by $
demand
A simplified version of input-output analysis of a national economy has the following input-output matrix:
Agriculture Manufacturing Households
0.051
0.102
Agriculture
Manufacturing
0.245
0.099
0.291
0.279
Households
0.433
0.372
0.011
A.
units of Agriculture are need to produce one unit of Households
B. Given Demand (in billions of dollars) for the three sectors are as follows
2.2=Agriculture 33.4 Manufacturing, 30.5=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
billion (nearest 0.01) in order to meet that increase in household external demand
by $
Calculus for Business, Economics, Life Sciences, and Social Sciences (14th Edition)
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