SOLVED ECO403 Assignmnet 1 Solution and Discussion

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#SEMESTER #SPRING2020
MACROECONOMICS (ECO403)
ASSIGNMENT
DUE DATE: 05TH JUNE, 2020 MARKS: 10
The Case:
Bangladesh is one of the fastest growing economies in the world. In the decade since 2004, Bangladesh averaged a GDP growth of 6.5% that has been largely driven by its exports of readymade garments, remittances and the domestic agricultural sector. According to World Bank report, Bangladesh has made a remarkable progress in reducing poverty supported by sustained economic growth. Tables provided below show the supposed facts and figures of the economy of Bangladesh for different years along with their particular requirements.
Requirement # 1:
Suppose the Consumption, Investment, Government expenditures, Net exports and Gross Domestic Product (GDP) for the year 2016 and 2017 for the economy of Bangladesh are given below in the table no.1. Complete the missing values by using given information.
Table no.1:

Requirement # 2:
Keeping in view the hypothetical data for different indicators of Bangladesh economy given in table no. 2, calculate the following:
a. Labor force for the year 2017
b. Unemployment rate for the year 2017
(Marking scheme: 1.5 + 1.5)

Table no.2: Indicators

(Marking scheme: 1.5 + 1.5)
Requirement # 3:
Suppose the economy of Bangladesh produces only two goods; Wheat and apples. Price and quantity of wheat and apples has been given in table no.3 for the years 2013 and 2014. Calculate the following by using given information.
a. Nominal GDP for the year 2014
b. Real GDP for year 2014 by taking 2013 as base year
Table no.3:

(Marking scheme: 2 + 2)

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[zaasmi]

@zaasmi said in ECO403 Assignmnet 1 Solution and Discussion:

Requirement # 3:
Suppose the economy of Bangladesh produces only two goods; Wheat and apples. Price and quantity of wheat and apples has been given in table no.3 for the years 2013 and 2014. Calculate the following by using given information.
a. Nominal GDP for the year 2014
b. Real GDP for year 2014 by taking 2013 as base year
Table no.3:

(Marking scheme: 2 + 2)

Nominal GDP
Price x Quantity + …
=10 x 200 +15 x 110
=3650

Real GDP
Base Price x Quantity + …
=7 x 200 +11 x 110
=2610

[zaasmi]

@zaasmi said in ECO403 Assignmnet 1 Solution and Discussion:

Requirement # 2:
Keeping in view the hypothetical data for different indicators of Bangladesh economy given in table no. 2, calculate the following:
a. Labor force for the year 2017
b. Unemployment rate for the year 2017
(Marking scheme: 1.5 + 1.5)
Table no.2: Indicators

(Marking scheme: 1.5 + 1.5)

Labour Force:
as we Know

=Employee+Unemployed
=7,00,000+2,00,000
= 9,00,000 ------------- (1)

As we know
Unemployment Rate:
=(Unemployed/Labor Force) x 100
=(2,00,000/9,00,000) x 100
=22.22% ------------- (2)

[zaasmi]

@zaasmi said in ECO403 Assignmnet 1 Solution and Discussion:

Requirement # 1:
Suppose the Consumption, Investment, Government expenditures, Net exports and Gross Domestic Product (GDP) for the year 2016 and 2017 for the economy of Bangladesh are given below in the table no.1. Complete the missing values by using given information.
Table no.1:

NX = Y - C - I - G
NX = 21000

Y = C + I + G + NX
NX = 275000