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Material balances are a method of economic planning where material supplies are accounted for in natural units and used to balance the supply of available inputs with targeted outputs. Material balancing involves taking a survey of the available inputs and raw materials in an economy and then using a balance sheet to balance the inputs with output targets specified by industry to achieve a balance between supply and demand. This balance is used to formulate a plan for resource allocation and investment in a national economy.
The method of material balances is contrasted with the method of input-output planning developed by Wassily Leontief.
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