Suppose an economy has only two sectors: Goods and Services.Each year, Goods sells 80% of its outputs to Services and keepsthe rest, while Services sells 70% of its output to Goods and retainsthe rest. Find equilibrium prices for the annual outputs of the GoodsGoodsServices0.8and Services sectors that make each sector's income match its0.20.3expenditures.0.7Denote the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and ps,respectively.If ps = $1000, then PG = S(Type an integer or a decimal.)If ps = $80, then PG= $(Type an integer or a decimal.)

A goods is a tangible thing that buyers want or own. A service is definitely not a substantial or…

, while Services sells 70% of its output to Goods and retains . Find equilibrium prices for the annual outputs of the Goods vices sectors that make each sector's income match its itures. 0.2 0.8 0.7 the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and ps, vely. S1000, then PG = $[ (Type an integer or a decimal.)

, while Services sells 70% of its output to Goods and retains . Find equilibrium prices for the annual outputs of the Goods vices sectors that make each sector's income match its itures. 0.2 0.8 0.7 the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and ps, vely. S1000, then PG = $[ (Type an integer or a decimal.)

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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