Business, 12.08.2020 06:01 CalCDanG

Suppose an economy consists of the Coal, Electric, and Steel sectors. Denote the prices (that is, dollar values) of the total annual outputs of the Coal, Electric, and Steel sectors by p Subscript Upper CpC, p Subscript Upper EpE, and p Subscript Upper SpS, respectively. Suppose the general solution to find equilibrium prices that make each sector's income match its expenditures is p Subscript Upper CpCequals=0.880.88p Subscript Upper SpS, p Subscript Upper EpEequals=0.850.85p Subscript Upper SpS, and p Subscript Upper SpS is free. One set of equilibrium prices for this economy is p Subscript Upper CpCequals=$8888, p Subscript Upper EpEequals=$8585, and p Subscript Upper SpSequals=$100100. Find another set. Suppose the same economy used Japanese yen instead of dollars to measure the values of the various sector's output. Would this change the problem in any way? Discuss.

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Suppose an economy consists of the Coal, Electric, and Steel sectors. Denote the prices (that is, do...

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