Answer to Question #99869 in Macroeconomics for Estibel

Question

1. 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
b. How much of each of B’s output dollars is required as input for each of the three sectors?

Answer 1

b. Each sector should produce such amount, at which demand equals to supply, but to find how much of each of B’s output dollars is required as input for each of the three sectors we need to know the matrices.