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ECO403 Macroeconomics Assignment No. 01 Solution and Discussion Fall 2014 Due Date: Dec 05, 2014
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The Case:
The Olympics are about competition and heroics and national pride. These
games provide not only healthy environment but also big business
particularly for the people of host country. Host countries often spend
large sums of money to promote and to stage the Olympics. Governments
and Olympic proponents always promote the Olympics as it is beneficial to
the economy and community. Chinese government organized Olympics in
2008.
Given data will provide the complete profile of the economy of china before
and after Olympics.
Before Olympics After Olympics
Net Exports Rs.670 million Rs. 970 million
Investment Rs. 150 million Rs. 350 million
Unemployed persons 90 million 70 million
Labor force 170 million 175 million0
100
200
300
400
500
600
700
800
900
Before Olympics After Olympics
Consumption Government expenditures
0
1
2
3
4
5
6
7
8
Before Olympics After Olympics
Inflation Rate % Real Interest Rate%Requirements:
Keeping in view the above given facts and figures related to Chinese
economy, presented in tabular and graphical form, calculate:
a. Unemployment rate before and after Olympics
b. Nominal interest rate before and after Olympics
c. Gross domestic product (GDP) before and after Olympics
d. National saving before and after Olympics
Note: Write down formula and all relevant steps involved in calculations.
The values of consumption, government expenditures, inflation rate and
real interest rate before and after Olympics should be taken from the
relevant graphs.
Marks: (5+5+5+5)
IMPORTANT:
24 hours extra / grace period after the due date is usually available to overcome
uploading difficulties. This extra time should only be used to meet the
emergencies and above mentioned due dates should always be treated as final
to avoid any inconvenience.
IMPORTANT INSTRUCTIONS
DEADLINE:
Make sure to upload the solution file before the due date on VULMS.
Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
Use the font style “Times New Roman” or “Arial” and font size “12”.
It is advised to compose your document in MS-Word format.
You may also compose your assignment in Open Office format.
Use black and blue font colors only.
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