3. Consider an economy divided into agricultural sector, A, and service sector, S. To produce one unit in sector A 1 requires 1/6 units from A and ¼ units from S. To produce a unit of S requires 1 4...

Extracted text: 3. Consider an economy divided into agricultural sector, A, and service sector, S. To produce one unit in sector A 1 requires 1/6 units from A and ¼ units from S. To produce a unit of S requires 1 4 units from A and /4 units from S. 4 Suppose final demands in each of the two sectors are 50 units. Let x and y denote total production in industries A and S respectively. What is the Leontief system for this economy?


Extracted text: 4. The equilibrium levels of income Y, consumption C, disposable income Ya, and taxation T, for a three-sector macroeconomic model satisfy the structural equations: Y = C + I, + Go C = a + bYa (0 0) Ya = Y – T T = tY + T, (0 < t="">< 1,="" t,=""> 0) i. Express this system in the form AX = d ii. Using Cramer's rule, find the equilibrium levels of consumption (C*), disposable income (Ya*) and taxation (T*)