Kindly correctly 2. Opening the modelIn Session 2 you explored a simple Closed Leontief Exchange Model with five in-terdependent industries. In the closed exchange model no goods or services enteror leave a national economy. However, most nations import and export goods. Forthis problem you will develop an open exchange model for the newly formed nation,NationLand, then generalize the model to an economy with n sectors.(a) Suppose NationLand has 5 sectors: agriculture (A), energy (N), real estate(R), education (E), and entertainment (T). The following table represents thenumber of units of goods from other sectors used to produce one unit with agiven sector. The table also lists the demand for each good from NationLand'strading partners.Internal and External Unit Demand LevelsInternal Consumption RatesA N R E0.1 0.05 0.025 0.15T0.05Agriculture (A)Energy (N)Real Estate (R)0.01 0.02 0.0 1 0.01 0.0250.4 0.3 0.1 0.1 0.25Education (E) 0.1 0.05 0.125 0.2 0.15Entertainment (T) 0.01 0.05 0.15 0.25 0.05Outside Demand (total)401001525Let A, N, R, E, and IT denote the number of units produced by the agri-culture (A), energy (N), real estate (R), education (E), and entertainment (T)sectors respectively. Write a system of equations that defines the number ofunits each sector should produce to satisfy both internal and external demand(total units).(b) Rewrite your system of equations in the form M = d where M is a matrix ofcoefficients. What do and d represent in this model?(c) Does the system have a solution? In other words, is there a set of productionlevels that would satisfy both internal and external demand? Is this solutionunique?

An input-output model is given by Leontief. This model refers that an economy is in equilibrium…

In Session 2 you explored a simple Closed Leontief Exchange Model with five in- terdependent industries. In the closed exchange model no goods or services enter or leave a national economy. However, most nations import and export goods. For this problem you will develop an open exchange model for the newly formed nation, NationLand, then generalize the model to an economy with n sectors. (a) Suppose NationLand has 5 sectors: agriculture (A), energy (N), real estate (R), education (E), and entertainment (T). The following table represents the number of units of goods from other sectors used to produce one unit with a given sector. The table also lists the demand for each good from NationLand's trading partners.

In Session 2 you explored a simple Closed Leontief Exchange Model with five in- terdependent industries. In the closed exchange model no goods or services enter or leave a national economy. However, most nations import and export goods. For this problem you will develop an open exchange model for the newly formed nation, NationLand, then generalize the model to an economy with n sectors. (a) Suppose NationLand has 5 sectors: agriculture (A), energy (N), real estate (R), education (E), and entertainment (T). The following table represents the number of units of goods from other sectors used to produce one unit with a given sector. The table also lists the demand for each good from NationLand's trading partners.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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