Israeli Economy In 1966, Leontief used his input-output model to analyze the Israeli economy by dividing it into three segments: agriculture (A), manufacturing (M), and energy (E), as shown in the following technological matrix.
|
| Input |
| |
A | M | E | ||
| A | $0.30 | $0.00 | $0.00 |
Output | M | $0.10 | $0.20 | $0.20 |
| E | $0.05 | $0.01 | $0.02 |
The export demands on the Israeli economy (in thousands of Israeli pounds) are listed as follows.
Agriculture | $140,000 |
Manufacturing | $20,000 |
Energy | $2,000 |
(a) Find I − T, where T is the technological matrix.
(b) Use computer software to find (I − T)−1.
(c) Find the total output for each sector required to meet both internal and external demand.
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