ECO403 - Macroeconomics Assignment No. 01 Solution and Discussion Fall 2013 Due Date 30-11-2013

[+ M.Tariq Malik]

The Case:
Suppose an Asian team of economists visit North Africa to analyze the economic
behavior of the people of North Africa during 1990s. After identifying the targets,
economists select Sudan one of the countries of North Africa. In 1991 and 1992,
the labor force was 700000 and 900000 respectively. Furthermore, they are unable
to get complete data. The data was in the shape of graph and incomplete tables
as follows:

Y-axis= Nominal GDP

In addition incomplete data is creating the crippled situation for the team. So,
economists compile a few questions. Being a student of economics, how can you
solve these given questions?
Requirements:
Using the above data, calculate:
a. National saving for the year 1991 and 1992
b. Nominal interest rate for the year 1990
c. GDP deflator for the year 1990
d. Unemployment rate for the year 1991
Note: Write down formula and all relevant steps involved in calculations. The
values of Nominal GDP and inflation rate should be taken from the relevant
graphs.
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[Arfa Kaleem]

Assignment 01 Eco403 Fall 2013

a. National saving for the year 1991 and 1992

National saving for the year 1991
National saving= Private saving + Public saving
National saving= 670 + 900
National saving= 1570
National saving for the 1992
National saving= Private saving + Public saving
National saving= 690 + 910
National saving= 1600
b. Nominal interest rate for the year 1990

i=π+r
i= 6 +4
i= 10
c. GDP deflator for the year 1990

GDP deflator= Nominal GDP / Real GDP *100
GDP deflator=6000/3500 * 100
GDP deflator= 171.42
d. Unemployment rate for the year 1991
Unemployment rate= Number of unemployed / Labor force*100
Unemployment rate = 75000/700000*100
Unemployment rate =10.71%

[innocent dolly]

here how u calculated nominal interst ???

yea fisher effect k through ni hoga calculate?

[shoaib hussain]

Arfa ny Fisher effect k through he calculate kia hai  

[ZohaiB]

nominal interest rate ≈ real interest rate + expected inflation rate.

[fourstar]

Nominal Interest rate=real interest rate + inflation premium (the expected rate of inflation)

                                    =4%+6%

                                    =10%

[amber]

plz koi btaye ga k labor force 700000 kasy aya? aur kahan se

[maryam nawaz]

read the case labor force already given

In 1991 and 1992,
the labor force was 700000 and 900000 respectively. 

[Usama Gee]

Can any body tell how is nominal GDP is calculated as 6000 ?????

Plz tell me the Formula  

[ZohaiB]

nominal gdp given in the above graph. wo curve jo 1990 ko jis point pr cros krti ha usy y  axis sa milao udr 6000 nominal gdp ha.

[Usama Gee]

Thanks a lot zohaib Bhaai

[amber]

Thank u soooo much maryam