ECO404 Assignment 1 Solution and Discussion

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Re: ECO404 Assignment 1 Solution and Discussion

             SEMESTER SPRING 2020

MANAGERIAL ECONOMICS (ECO404)
ASSIGNMENT
DUE DATE: 08TH JUNE, 2020 MARKS: 15
The Case:
According to the report of Asian Development Bank (ADB) Pakistan could have to face low economic growth rate during 2020 due to COVID-19. In 2019 economic growth rate was 3.3 percent while in 2020 it is projected to be 2.6 percent. Inflation will remain 11.5 percent as said in report. The lockdown situation in the country, to control COVID-19, has dampened consumer’s demand and private businesses badly. State bank of Pakistan has raised its policy interest rate to 12.25 per cent at the end of FY2019 to counter inflationary pressures. As now the decline in oil prices and expected slow demand under COVID-19, the State Bank of Pakistan reduced interest rate to 11 per cent in March 2020. ADB report predicts that inflation rate would be 8.3 percent in 2021. There is a strong direct relationship between inflation and economic growth. Supposed data of economic growth and inflation rate is given in the following table.

Requirement:
(a) Keeping in view the above given table fill the required field.
(b) If calculated value of “t” is greater than tabulated value of “t”, what does it mean?
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.
RULES FOR MARKING
Please note that your assignment will not be marked, if:
• It is submitted after the due date.
• The file you uploaded does not open or is corrupt.
• It is in any format other than MS-Word or Open Office; e.g. Excel,
PowerPoint, PDF etc.
• It is cheated or copied from other students, internet, books, journals etc.
Note related to load shedding: Please be proactive
Dear students!
As you know that semester activities have started and load shedding problem is also prevailing in our country. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.

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