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In input-output analysis developed by Wassily Leontief, the Hawkins-Simon Conditions guarantee that:

APrices will remain constant during inflation
BExports will always equal imports
CThe production system can yield positive net outputs of all goods
DCapital-labor ratio remains fixed

Explanation

Hawkins-Simon conditions ensure that the input-output matrix is viable, meaning production produces excess output beyond internal intermediate demand.

Submitted by: mcqstutor Team More Economics MCQs →

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