Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its outputs to Services and keeps the rest, while Services sells 63% of its output to Goods and retains the rest. Find equilibrium prices for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures.
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Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its outpu...
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