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