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Question
Agriculture, oil. A country's economy is based on two sectors, agriculture, and oil. Production of a dollar's worth of agriculture requires an input of from agriculture and from oil. Production of a dollar's worth of oil requires an input of from agriculture and from oil. Find the output from each sector that is needed to satisfy a final demand of million for agriculture and million for oil.
Solution
VerifiedAnswered 1 year ago
Answered 1 year ago
Step 1
1 of 4The Technology matrix can be written as:
We have the final demand as billion for agriculture and billion for oil. So we can write
First we need to find the value of , where is the identity matrix.
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