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ECO403 - Macroeconomics Assignment No. 1 Solution Fall 2018 Due Date: December 03, 2018

ECO403 - Macroeconomics Assignment No. 1 Solution Fall 2018 Due Date: December 03, 2018

The Case:
Part A:
Vietnam is located in Southeast Asia. This country borders China in north while
Laos and Cambodia in west. Tourism sector is a component of the modern
Vietnamese economy. This sector is providing boom in the economy. Major
exports include electrical equipment, footwear, coffee, fish and crude petroleum
products while major imports include steel, machinery and fertilizers. Suppose
facts and figure of the economy of Vietnam are given below.
Year 2017
Consumption Rs. 20,00,000
Investment expenditures Rs. 15,00,000
Government purchases Rs. 95,00,000
Total exports Rs. 6,00,000
Total imports Rs. 3,00,000
MPC 0.5
Number of employed 75,00,000
Number of unemployed 15,00,000
Inflation rate and real interest rate for the year 2017 is given below:
Inflation Rate % Real Interest Rate%
Keeping in view the above facts and figures, in the economy of Vietnam Calculate;
I. Labor force for the year 2017
II. Net exports for the year 2017
III. Gross domestic product for the year 2017
IV. Unemployment rate for the year 2017
(Note: Write down formula and all relevant steps involved in calculation)
Marks :(1+2+2+2)
Part B:
Suppose the nominal gross domestic product and real gross domestic product for
the economy of Vietnam for three years is given below. Calculate Gross Domestic
Product deflator (GDP Deflator) from the given data. You are required to give your
answer of GDP deflator in the table given below.
Years Nominal GDP Real GDP GDP deflator
2011 Rs 55,000 Rs 53,000 ?
2012 Rs 65,000 Rs 57,000 ?
2013 Rs 85,000 Rs 71,000 ?
Marks: (1+1+1)
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