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Assume an economy with 3 sectors: Agriculture, Manufacturing, and Services. To produce $1 of agricultural output requires $0.10 worth of agricultural products, $0.30 worth of manufacturing products, and $0.20 of services. To produce $1 of manufacturing output requires $0.35 of manufacturing, $0.05 of agricultural, and $0.30 of services worth of input. To produce $1 of ser- vices requires $0.15 worth of services and $0.25 of manufacturing products. The annual final demands for outputs of the sectors are $176, $320 and $650 billion, respectively.
(a) Determine the value of sectoral and national outputs.
(b) What impact an increase of 3 % in final demand for manufacturing products has on the sectoral and national outputs.
(c) What impact an increase of 3 % in final demands for all sectors has on the sectoral and national outputs.
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