Input-Output Economics

Input-Output Economics is a way to understand how different parts of an economy are connected. It looks at how the resources (inputs) like labor, raw materials, and capital are used to produce goods and services, which then become inputs for other industries. By mapping these flows, it shows how activity in one sector affects others, helping analyze economic dependencies and impacts. This approach is useful for planning, forecasting, and understanding the overall structure of an economy, demonstrating how industries are interlinked and how changes in one area can ripple through the entire system.