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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.

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### Replies to This Discussion

Assalam o Alaikum

sis samra tariq plz upload complete solution of this assignment, i have acc501 but really i follow u in answer from 1st semester.

1. before: -30 million after: 100 million

2. before: delta y=delta g after: delta y= delta g

3. before: 120 million after: 130 million

4. before: 41.67% after: 30.77%

5. before: 12% after: 13.4%

Enjoy.........

Regards......

For acc501 visit its discussion forum...all the answers and solution are discussed over there.......

samra tariq solution b post kar dein ap aj last date ha

i have done  ACC501 assignment and 2nd abhi aai nai

ECO403 Assignment July 2014

A) NX:
B) govt. purchases multiplier:
C) labor force:
D) unemployment rate:
E) nominal interest rate:

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.
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)
============================
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
===============
For the first part I used Y=C+I+G+NX
For the 2nd part I used deltaY=1/1-mpc * delta g
For the 3rd part I used labor force=no. of employed persons+no. of unemployed persons
For the 4th part I used unemployment rate=no. of unemployed persons/labor force * 100
For the 5th part I used i=r+pi
Substitute the values for before trade and after trade agreement respectively and get the ans.
Kindly share your ans. & ideas.....
Regards....
=================

Can any one please share the solution? Muje samaj he nai aa rai k formulas use kese karne han im stuck and aj last date hai

please solve government purchases multiplier, how to apply this formula, please put all the values here

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

Yahan ap ko koi kuch nai bataye ga.

All formulas are in handouts. see page # 81 for government purchases multiplier. Anyway bohat simple ha bhai.

Formula is 1/1-MPC

MPC values assignment file me han. 0.5 and 0.7

= 1/1-0.5

=1/0.5

= 2G delta

Second wali ap kar lo first ki mein ne kar di ha.

I have solved all answers thanks for no help by every one

Thank you so much

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