An economy consists of three industries: agriculture, mining and
manufacturing.
One unit of agricultural output requires \(0.2\) units of its own output, \(0.3\)
units of mining output and \(0.4\) units of manufacturing output.
One unit of mining output requires \(0.2\) units of agricultural output, \(0.4\)
units of its own output and \(0.2\) units of manufacturing output.
One unit of manufacturing output requires \(0.3\) units of agricultural output,
\(0.3\) units of mining output and \(0.1\) units of its own output.
(a) Write down the matrix of technical coefficients and find the Leontief
inverse.
(b) Determine the levels of total output needed to satisfy a final demand of
10000 units of agricultural output, 30000 units of mining output and 40000
units of manufacturing output.
(c) If the final demand for agricultural output rises by 1000 units and the
final demand for manufacturing output falls by 1000 units, calculate the
change in mining output.