Question

Describe assumption of input -output model

Answer 1

[AI-generated answer — Bot GPT 3.5]

The assumption of an input-output model is that there is a direct relationship between the inputs and outputs of a system or process. This means that changes in the input variables will result in predictable changes in the output variables.

The model assumes that there is a static relationship between inputs and outputs, and that other factors and variables within the system remain constant. It also assumes that the relationships between inputs and outputs are linear and do not change over time.

Additionally, the input-output model assumes that there is no feedback loop or circular causality, meaning that the outputs do not have an influence on the inputs. It assumes a one-way flow of causality from inputs to outputs.

Overall, the assumption of an input-output model is that it provides a simplified representation of a system or process by focusing on the direct relationship between inputs and outputs and disregarding other factors and dynamics within the system.

Answer 2

[AI-generated answer — Step-by-Step Bot]

The assumption of an input-output model is that there is a relationship between the inputs (resources, factors of production) and outputs (goods, services) of an economic system. This relationship assumes that the level of outputs produced is determined by the level of inputs used. It also assumes that the relationship between inputs and outputs is stable and consistent over time. In other words, the model assumes that there is a predictable and constant relationship between the amount of resources used and the amount of goods and services produced. Additionally, the model assumes that the inputs are used efficiently and effectively to produce the desired outputs.