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  3. an economy has the following total transactions inputoutput matrix agriculture...

Question: an economy has the following total transactions inputoutput matrix agriculture...

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  1. An economy has the following total transactions input-output matrix:

                            Agriculture   Manufacturing   Energy    Services

Agriculture           1.30                0.40                  0.30          0.40

Manufacturing     0.40                 1.50                 0.40          0.40

Energy                  0.30                0.50                 1.20           0.60

Services                0.50                0.50                  0.60          1.20

  1. If final demand (say exports) of energy products rises by $ 300 billion, what will be the increase in output in each industry? In GDP?
  1. Calculate the GDEP multipliers for agriculture and manufacturing.
  1. In using the input-output model, what did you assume about input and output prices?
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