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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

(Nominal interest rate) i = r + by (inflation rate)

MACROECONOMICS (ECO403)

ASSIGNMENT NO. 01

1. a.  National saving for the year 1991 and 1992

National saving= public savings +private savings

National saving for the year 1991

=900+670=1570

National saving for the year 1992

=910+690=1600

c. GDP deflator for the year 1990

GDP deflator=       Nominal GDP/ Real GDP*100

GDP deflator=       6000 /3500*100

=171.42

d. Unemployment rate for the year 1991

Number of unemployed / Labor force*100

75000/700000*100=10.71

1. A.      CALCULATE NATIONLA SAVING FOR THE YEAR 1991 AND 1992

National savings:

National savings =   public savings +   private savings

1. B.      NOMINAL INTREST RATE FOR THE YEAR 1990

i = nominal interest rate

R = real interest rate

i = r +

I  = 4  + 6                                                                             = 10

1.

Nominal GDP / real GDP *100

=6000/3500 * 100                                                          = 171.4

No. of un-employed / labour force *100

= 75000/ 700000 *100                                                    =10.7%

i hope it will help u to understand any inconvenience or misconception about calculations.

i think ker skaty hein but it does not make difference

National saving for 1991 = 1570

National saving for 1992 = 1600

d. Unemployment rate for the year 1991 = 18 %

bhaiooo n behnoo answer match karooooooooo

please show the calculations how you get 18% unemployment rate?

10 % hia ghalti sy 18 likh diya

its ok!

MACROECONOMICS (ECO403)

ASSIGNMENT NO. 01

1. a.  National saving for the year 1991 and 1992

National saving= public savings +private savings

National saving for the year 1991

=900+670=1570

National saving for the year 1992

=910+690=1600

c. GDP deflator for the year 1990

GDP deflator=       Nominal GDP/ Real GDP*100

GDP deflator=       6000 /3500*100

=171.42

d. Unemployment rate for the year 1991

Number of unemployed / Labor force*100

75000/700000*100=10.71

ap wrong ahan

b. Nominal interest rate for the year 1990

Nominal interest rate =real interest rate+ inflation rate

Real interest rate =4%

Total savings for the year 1990 =700+500

=1300

=4/100*1300=52

=52+6=58

Parishey mojy ye ni samj ai k national  saving 8 no ka hy or ap ny to 2 no ka kar diya hy  mojy to uncomplicated lag raha hy kuch mojy samj ni a rahi hy

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