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ECO403 - Macroeconomics Assignment No. 1 Solution and Discussion Spring 2014 of Virtual University (VU) Due Date: July 25, 2014

ECO403 - Macroeconomics Assignment No. 1 Solution and Discussion Spring 2014 of Virtual University (VU) Due Date: July 25, 2014

Assignment # 01

Macroeconomics (ECO403)

 

Dear Students!

This is to inform that Assignment No. 1 will be opened on July 21, 2014 and due date of assignment submission will be July 25, 2014.

 

A 24 hours extra/grace period after the due date is usually available to overcome uploadingdifficulties which may be faced by the students on last date.  This extra time should only be used to meet the emergencies; and above mentioned due date should always be treated as final to avoid any inconvenience.

 

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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.

My answers are as follows:
A) NX:
before trade agreement:-30 million, after trade agreement: 100 million
B) govt. purchases multiplier:
before trade agreement: 2deltaG, after trade agreement: 3.33deltaG
C) labor force:
before trade agreement: 120 million, after trade agreement: 130 million
D) unemployment rate:
before trade agreement: 41.67%, after trade agreement: 30.77%
E) nominal interest rate:
before trade agreement: 12%, after trade agreement: 13.4%

Everyone, check mine and share your ans. and ideas please...
Regards....


sis mara answer bi ap jasa hi han

1 =before trade agreement:-30 million, after trade agreement: 100 million

 

2 =before trade agreement: 2deltaG, after trade agreement: 3.33deltaG

 

3 =before trade agreement: 120 million, after trade agreement: 130 million

 

4 =before trade agreement: 120 million, after trade agreement: 130 million

 

5 =before trade agreement: 12%, after trade agreement: 13.4%

 

Thats good but you need to make a correction in part 4, where unemployment rate is required.....

Regards...

SEMESTER SPRING 2014 
MACROECONOMICS (ECO403) 
ASSIGNMENT NO. 01 
DUE DATE: 25TH JULY, 2014 
MARKS: 30
The Case: 
Indonesia has the largest economy in Southeast Asia and one of the emerging economies of 
the world. The country is not only a member of G-20 major economies but also classified as 
a newly industrialized economy. Main industries of Indonesia are fishing, petroleum, 
timber, paper products, cotton cloth, tourism, natural gas, coal and tin. Suppose in 2015, 
Philippines, Australia, Palau and Indonesia sign a trade agreement. Hypothetical facts and 
figures of Indonesian economy before and after trade agreement are given below. 
Before Trade agreement After trade agreement 
Y = output Rs.1670 million Rs. 2500 million 
Investment Rs. 300 million Rs. 500 million 
Consumption Rs. 900 million Rs. 1000 million 
Government purchases Rs. 500 million Rs. 900 million 
MPC 0.5 0.7 
Real interest rate 5% 5.7% 
Inflation 7% 7.7% 
No. of employed persons 70 million 90 million 
No. of unemployed 
persons 
50 million 40 million 
On the basis of given facts and figures, it can be forecasted that this trade agreement will 
flourish the economies of member Counties in general and Indonesian economy in 
particular. Requirements: 
Calculate the following for Indonesian economy before and after trade agreement: 
a. Net exports 
b. Government purchases multiplier 
c. Labor force 
d. Unemployment rate 
e. Nominal interest rate 
Note: Write down all relevant steps involved in calculation. 
Marks: (6+6+6+6+6) 

Please share the Formulas to calculate.

juste discuss ideas+solution

how to calculate

Formulas:- 

1) Net Export:-

Formula :-   Y=C+I+G+NX

Y=Outcome

C= Consumption

G= Government Purchases

NX= Net Export

2)  Government Purchase Multiplier :- Y=1/1-MPC (Delta G)

3) Labor Force = No of Employed + No of Unemployed

4) Unemployment Rate = No of Unemployed/Labor Force * 100

5) Nominal Interest Rate = Real Interest Rate + Inflation Rate 

I hope i have helped 

thank u so much syed badsha

achi sharing ha very helpful ...

salam bhai thanks to give me this information

but what is Delta G 

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