Suppose a simplified economy consisting of the three sectors

Suppose a simplified economy consisting of the three sectors Manufacturing, Energy and Services has the input-output matrix below. How many cents of energy are required to produce $1 worth of manufactured goods? M E S[0.15 0.30 0.20 0.20 0.30 0.15 0.10 0.25 0.30] cents

Solution

Each row represents the output

Each column represents the input

Hence the 1,2 element represents the input from energy and output of manufactured good.

Answer is 0.30 cents