Problems 33-38 refer to closed Leontief models.
A closed model for an economy has a manufacturing industry, utilities industry, and households industry. Each unit of manufacturing output uses
(a) Write the technology matrix for this closed model of the economy.
(b) Find the gross production for each industry
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Chapter 3 Solutions
Mathematical Applications for the Management, Life, and Social Sciences
- Suppose the coal and steel industries form a closed economy. Every $1 produced by the coal industry requires $0.30 of coal and $0.70 of steel. Every $1 produced by steel requires $0.80 of coal and $0.20 of steel. Find the annual production (output) of coal and steel if the total annual production is $20 million.arrow_forward23. Consider a simple economy with just two industries: farming and manufacturing. Farming consumes 1/2 of the food and 1/3 of the manufactured goods. Manufacturing consumes 1/2 of the food and 2/3 of the manufactured goods. Assuming the economy is closed and in equilibrium, find the relative outputs of the farming and manufacturing industries.arrow_forward
- Linear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage Learning