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s, Agriculture (A), Energy (E), Manufacturing (M), and
Chapter 1, Problem 4E(choose chapter or problem)
PROBLEM 4ESuppose an economy has four sectors, Agriculture (A), Energy (E), Manufacturing (M), and Transportation (T). Sector A sells 10% of its output to E and 25% to M and retains the rest. Sector E sells 30% of its output to A, 35% to M, and 25% to T and retains the rest. Sector M sells 30% of its output to A, 15% to E, and 40% to T and retains the rest. Sector T sells 20% of its output to A, 10% to E, and 30% to M and retains the rest.a. Construct the exchange table for this economy.b. [M] Find a set of equilibrium prices for the economy.
Questions & Answers
QUESTION:
PROBLEM 4ESuppose an economy has four sectors, Agriculture (A), Energy (E), Manufacturing (M), and Transportation (T). Sector A sells 10% of its output to E and 25% to M and retains the rest. Sector E sells 30% of its output to A, 35% to M, and 25% to T and retains the rest. Sector M sells 30% of its output to A, 15% to E, and 40% to T and retains the rest. Sector T sells 20% of its output to A, 10% to E, and 30% to M and retains the rest.a. Construct the exchange table for this economy.b. [M] Find a set of equilibrium prices for the economy.
ANSWER:Solution 4E(a) Distribution of output fromAgricultureEnergyManufacturingTranscription