Input-Output Solutions - consumed internally 7 units of...

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Input-Output Homework: Solutions 1. p. 159 #8 a. [X] = 295.5 million ag 340.9 million manuf b. [A][X] = 195.5 million ag Consumed internally 190.9 mil manuf 2. p. 159 #11 production consumed internally [X] = 443.75 mil ag [A][X] = 243.75 mil ag 381.25 mil man 281.25 mil man 281.25 mil trans 221.25 mil trans 3. a. Input-output matrix [A] = .2 .2 .4 .1 E P E P or [A] = .1 .4 .2 .2 P E P E b. Internal consumption: 15.3 mil P, 11.4 mil E Demand: 9.7 mil P, 20.6 mil E c. Production: 72.5 mil P, 73.125 mil E 4. rounded to the nearest thousand 5. a. AX = the amount used internally. If sector 1 produces 10 units, sector 2 produces 20 units and sector 3 produces 10 units, this combined production will use up 10 units of sector 1’s products, 13 units of sector 2’s products and 15 units of sector 3’s products. b. D = the amount from each sector that is available for sale. In this case, 0 units of sector 1’s products (since the amount that sector 1 produced equals the amount that was
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Unformatted text preview: consumed internally), 7 units of sector 2’s products will be available for sale, and -5 units of sector 3’s units will be available (So more of sector 3’s products were used up than were produced – which is only possible if there is a stockpile on hand.) c. (I –A)-1 D = X = the amount that was produced. In this case, 10 units from sector 1, 20 units from sector 2 and 10 units from sector 3. 6a. If a ij = 0, then sector j requires 0 units of sector i’s products b. It is impossible to need negative units of something for production. c. If a column totals more than 1, then producing $1 of something requires more than $1 worth of inputs, leading to instant debt. Estimated Production Sector Year 1 Year 2 Year 3 M 1,333,000 1,433,000 1,402,000 E 938,000 997,000 1,035,000 T 765,000 754,000 747,000 S 687,000 728,000 755,000...
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