Input-Output Models

Input-Output Models are economic tools that describe how different sectors of an economy interact with one another. They show how the output of one industry serves as input for another, helping to track the flow of goods and services. By examining these interconnections, businesses and policymakers can understand the effects of changes in one sector on others, predict economic outcomes, and make informed decisions. Essentially, these models provide a snapshot of how an economy functions as a network, illustrating the dependencies between industries.