The Leontief model is a mathematical model that economists use to analyze the interdependence of different sectors in an economy. It is based on the idea that the output of one sector is used as input for other sectors, and that the total output of the economy is determined by the demand for final goods and services.
The Leontief model is important because it allows economists to understand how changes in one sector of the economy can affect other sectors. This information can be used to make policy decisions that promote economic growth and stability. For example, the Leontief model can be used to analyze the impact of trade policies, tax policies, and government spending.
