1 please 1.6 EXERCISES1. Suppose an economy has only two sectors, Goods and Ser-vices. Each year, Goods sells 80% of its output to Servicesand keeps the rest, while Services sells 70% of its output toGoods and retains the rest. Find equilibrium prices for theannual outputs of the Goods and Services sectors that makeeach sector's income match its expenditures..2Goods.8-.7Services.32. Find another set of equilibrium prices for the economy inExample 1. Suppose the same economy used Japanese yeninstead of dollars to measure the value of the various sec-tors' outputs. Would this change the problem in any way?Discuss.3. Consider an economy with three sectors, Chemicals & Met-als, Fuels & Power, and Machinery. Chemicals sells 30% ofoutput to Fuels and 50% to Machinery and retains theoutput to Chemicals and 10%its6.7.8.

1. Suppose an economy has only two sectors, Goods and Ser- vices. Each year, Goods sells 80% of its output to Services and keeps the rest, while Services sells 70% of its output to Goods and retains the rest. Find equilibrium prices for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures.

1. Suppose an economy has only two sectors, Goods and Ser- vices. Each year, Goods sells 80% of its output to Services and keeps the rest, while Services sells 70% of its output to Goods and retains the rest. Find equilibrium prices for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 1P

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