Exercises are derived from economic data for 2002 published by the U.S. Bureau of Economic...

Exercises are derived from economic data for 2002 published by the U.S. Bureau of Economic Analysis.

Industry Analysis: Two Industries The machinery (machine) and motor vehicles, bodies and trailers, and parts (auto) industries are interrelated. Based on data from 2002, it requires roughly $0.09 from the machine industry and $0.02 from the auto industry to produce $1 of machine products. Similarly, it requires $0.02 from the machine industry and $0.31 from the auto industry to produce $1 of auto products. If the external demand for machine products is $202 billion and the external demand for auto products is $293 billion, what output from each sector is required to meet the demand for machine and auto products?