A) An economy consists of three interdependent sectors, agriculture, mining and manufacturing. The flow of inputs and outputs between the sectors is represented in
the table below:
Inputs (Tons)
Final
Final
demand
Output (Tons) Agriculture Mining Manufacturing
Output
Agriculture
20,000 32,500 37,500 10,000 100,000
Mining
30,000 65,000 37,500 30,000 162,500
Manufacturing 40,000 32,500 12,500 40,000 40,000
Required:
a) The technical coefficient matrix
(4 marks)
b) The Leontief inverse matrix
(7 marks)
c) The output level for each sector of the final demand for the agricultural sector
increases by 1000 tons and that of the manufacturing sector falls by 500 tons and the
final demand for the mining sector remains unchanged.
(4 marks)​