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Demand (I-O)

Demand is an estimate of the amount of goods and services required by a region in order to remain in operation at current levels. The value is calculated using industry purchases across the nation, measured in terms of sales. Industry wages, taxes, and other values added payments are indirectly part of the demand through the production of the supplying industry. It is not possible to know the proportions into which demand should be broken out into categories such as wages, taxes, etc., but it is assumed that demand includes those categories.

See also: Sales, How Do Demand and Sales Differ?

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