Answered

10. Assume the economy consists of 3 sectors namely agriculture (A), manufacturing (M) and energy (E). In general, part of the output from one sector will be used by other sectors through intra-industry purchases and the surplus will be sold to meet final consumer demand. The technology matrix is given as below.

0.2 0.2 0.1
[0.2 0.4 0.1 ]
0.1 0.2 -0.3

What is the amount of production in the economy to meet the final consumer demand which is 80 units of agriculture, 60 units of manufacturing and 50 units of energy? ​