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ECO403 - Macroeconomics Assignment No. 1 Solution and Discussion Spring 2014 of Virtual University (VU) Due Date: July 25, 2014
Assignment # 01
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.
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Please Discuss here about this assignment.Thanks
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My answers are as follows:
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...
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.....
SEMESTER SPRING 2014
ASSIGNMENT NO. 01
DUE DATE: 25TH JULY, 2014
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 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
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
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.
Please share the Formulas to calculate.
juste discuss ideas+solution
how to calculate
1) Net Export:-
Formula :- Y=C+I+G+NX
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