Exercises 1–4 refer to an economy that is divided into three sectors —manufacturing, agriculture, and services. For each unit of output, manufacturing requires .10 unit from other companies in that sector, .30 unit from agriculture, and .30 unit from services. For each unit of output, agriculture uses .20 unit of its own output,.60 unit from manufacturing, and .10 unit from services. For each unit of output, the services sector consumes .10 unit from services, .60 unit from manufacturing, but no agricultural products.
1. Construct the consumption matrix for this economy, and determine what intermediate demands are created if agriculture plans to produce 100 units.
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