Posted by sam on .
A simple economy consists of two industries: agriculture and manifacturing. The production of 1 unit of agricultural products requires the consumption of 0.2 units of agricultural products and 0.15 units of manufactured goods. The production of 1 unit of manufactured goods requires the consumption of 0.25 units of agricultural products and 0.2 units of manufactured goods.
Find the gross output of goods needed to satisfy a consumer demand for 120 million dollars worth of agricultural products and 130 million dollars worth of manufactured products.