Question

1. An economy has two sectors: manufacturing and services. One unit of output from manufacturing requires inputs of 0.1 units from manufacturing and 0.8 units from ser- vices. One unit of output from services requires inputs of 0.4 units from manufacturing and 0.2 units from services. The final demand is 4 units of manufacturing and 2 units of services (e) (3 points) W which sector corresponds to each column. rite down the consumption matrix for the economy. Clearly indicate (b) (4 points) State the general formula for the Leontief model, then write the matrix equation for the Leontief model for this particular economy. You do not need to solve the matrix equation

Answer 1

-et M anu factunng sechor output (Total) bex it Services sectu output (totrl) be X2 unit 2) +4 unitexternal odemond c manufac similarly "Totul ‘/P fron Serencen secter 1, given by ffリ consump hon mamx . elemenr an-0-1-> produ o/p q12-a. 8-consump hon frum Service, sector fuv manufrchry servicer umut. ouwn Csenviceun (b Tbe general formalet por Leontes model: edo -て Where A=

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