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The Olympics are about competition and heroics and national pride. These games provide not only healthy environment but also big business particularly for the people of host country. Host countries often spend large sums of money to promote and to stage the Olympics. Governments and Olympic proponents always promote the Olympics as it is beneficial to the economy and community. Chinese government organized Olympics in 2008.
Given data will provide the complete profile of the economy of china before and after Olympics.
Before Olympics After Olympics
Net Exports Rs.670 million Rs. 970 million
Investment Rs. 150 million Rs. 350 million
Unemployed persons 90 million 70 million
Labor force 170 million 175 million
0 100 200 300 400 500 600 700 800 900
Before Olympics After Olympics Consumption Government expenditures
0 1 2 3 4 5 6 7 8
Before Olympics After Olympics
Inflation Rate % Real Interest Rate%
Keeping in view the above given facts and figures related to Chinese economy, presented in tabular and graphical form, calculate:
a. Unemployment rate before and after Olympics b. Nominal interest rate before and after Olympics c. Gross domestic product (GDP) before and after Olympics d. National saving before and after Olympics
Note: Write down formula and all relevant steps involved in calculations. The values of consumption, government expenditures, inflation rate and real interest rate before and after Olympics should be taken from the relevant graphs.
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