input-output model

The Input-Output model is an economic framework that illustrates how different sectors of an economy interact with each other. It shows how the output from one industry serves as an input for another. For example, when farmers produce food, that food is an input for restaurants. This model helps economists understand the flow of goods and services, analyze economic relationships, and assess the impact of changes in one sector on others, aiding in policy-making and economic planning. Essentially, it’s a way of mapping the interconnectedness of various economic activities.