ECO403 Assignment # 1 Solution

Solution 1


Nominal GDP      Real GDP      GDP reflector     Inflation rate

92575                   92575                100                   ---
94115                   82355

              114.3               14.3%
145800                112450              129.7               15.4%

Formulas
For calculation nominal gdp Multiply Ps & Qs from same year llike 200*140+315*205=92575
Etc etc
Asy he bqi b calculate krni ha
Or real gdp me prices 1st wali use hongi or quantities sub ki baribari lagai jaengy
Llike 200*14+315*205=92575
200*70+315*217=82355
200*200+315*230=112450
GDP Deflator = Nominal GDP /Real GDP *10
Or inflation rate 1st --, or 2nd 114.3-100=14.3%
3rd 129.7-114.3=15.4%

Solution 2

labor force = employment * unemployment
= 164.5+8= 172.5 million
number of people not in labor force= not employed= 8 million
Labor-Force Participation Rate = Labor Force/Adult Population x 100
=172.5/329.8*100 = 52.30 million
Unemployment Rate = Number of Unemployed /Labor Force*100
=8 /17505*100= 4.64 million