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hey......I calculate all requirements but facing problem as i don't know where to include values of Labour force & Unemployment rate?

For example 

not solution ok 

Solution 1


Nominal GDP      Real GDP      GDP reflector     Inflation rate 

92575                   92575                100                   --- 
94115                   82355

              114.3               14.3% 
145800                112450              129.7               15.4% 

Formulas
For calculation nominal gdp Multiply Ps & Qs from same year llike 200*140+315*205=92575
Etc etc
Asy he bqi b calculate krni ha
Or real gdp me prices 1st wali use hongi or quantities sub ki baribari lagai jaengy
Llike 200*14+315*205=92575
200*70+315*217=82355
200*200+315*230=112450
GDP Deflator = Nominal GDP /Real GDP *10
Or inflation rate 1st --, or 2nd 114.3-100=14.3%
3rd 129.7-114.3=15.4%

Solution 2

labor force = employment * unemployment
= 164.5+8= 172.5 million
number of people not in labor force= not employed= 8 million
Labor-Force Participation Rate = Labor Force/Adult Population x 100
=172.5/329.8*100 = 52.30 million
Unemployment Rate = Number of Unemployed /Labor Force*100
=8 /17505*100= 4.64 million

GDP = Y = C + I + G + NX

Y = 70 + 30 + 50 + 10 

Y = 160 Million before policy 

National savings = private saving + public saving 

private savings = ( Y - T ) - C

Public saving = T -  G

= (Y - T ) - C + T - G 

= Y - C - G

= 160 - 70 - 50 

S = 40 million before policy

Nominal interest rate = real interest rate + inflation rate

i = r + inflation rate

i = 2 + 5 

i = 7 % before policy

Government purchases multiplier = change in Y = 1/1-MPC change in G 

change in Y = 1/1-0.5

change in Y = 2 before policy

The increase in G causes income to increase by 2 times as much

Answer.

(A)   Gross Domestic Product

(i)                  (Before)

Gross Domestic Product

GDP = C + I + GS +X – M

GDP = 70 + 30+ 50 +10

GDP = 160 Million

(ii)                (After)

Gross Domestic Product

GDP = C + I + GS + X – M

GDP = 90 +50 + 60 + 20

GDP = 220 Million

(B)   National Saving

(i)                  (Before)

Y – C – G

160 – 70 – 50

160 – 120

40 Million

(ii)                (After)

Y – C – G

220 – 90 – 150

220 – 150

70 Million

(C)   Nominal Interest rate

(i)                  (Before)

R + I

5 + 2

7 %

(ii)                (After)

R + I

7 + 3

10 %

(D)   Government Purchases Multiplier

(i)                  (Before Policy)

DY = 1 / 1 – MPC DG

DY = 1 / 1 – 0.5 DG

DY = 1 / 0.5 DG

DY = 2 DG

(ii)                (After Policy)

DY = 1 / 1 – MPC DG

DY = 1 / 1 – 0.7 DG

DY = 1 / 0.3 D G

DY = 3.3DG

 

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