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

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.
Marks: (8+4+4+4)
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Replies to This Discussion

Please Discuss here about this assignment.Thanks

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions.

Formulas:

National saving = public saving+private saving

Nominal Interst rate=i = n × ((1 + r)1/n - 1)

GDB Deflator=Nominal Gdb/Real Gdb*100

Unemployment rate=Number of unemployed/Labour papulation*100

Nominal interst rate wala confirm nae baki theak hain 

acha gdb deflator wale me real gdb to hamre pas majod he lekan nominal gdb kese calculate krna he

Tariq bhai,

Could you please show the calculations of public saving and private saving as per the formula given below.

• Private saving = (Y –T) – C
• Public saving = T – G

Thanks

Dear Students Don’t wait for solution post your problems here and discuss ... after discussion a perfect solution will come in a result. So, Start it now, replies here give your comments according to your knowledge and understandings....

Formulas:

National saving = public saving+private saving

Nominal Interst rate=i = n × ((1 + r)1/n - 1)

GDB Deflator=Nominal Gdb/Real Gdb*100

Unemployment rate=Number of unemployed/Labour papulation*100

GDP DEFLATOR
The GDP deflator, also called the implicit price deflator for GDP, measures the price of output
relative to its price in the base year. It reflects what’s happening to the overall level of prices in
the economy.


GDP Deflator = Nominal GDP × 100
                      Real GDP

National saving, S = Private saving + Public saving

Unemployment Rate = Number of Unemployed x 100
                                        Labor Force

(Nominal interest rate) i = r + 

after r value is not visible! please write it clearly. Thanks

it is pi 

r = i - \pi

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