ECO403 - Macroeconomics

Total Marks 5 Starting Date Monday, January 20, 2020 Closing Date Tuesday, January 28, 2020 Status Open Question Title Fiscal policy Question Description The Case: South Korea is 4th largest economy in Asia. This economy has a strong export base and skilled labor force. Important sectors of this economy are automobiles, shipbuilding, mining and tourism. South Korea achieved a landmark in tourism in November, 2012 by attracting 10.3 million visitors. It was the first time that the number of foreign tourists topped 10 million in a year. Suppose, in order to meet the expenditures faced by tourism department of South Korea Ministry of Culture, Sports and Tourism, government decides to increase the direct and indirect tax rate. Requirement: Keeping in view the above facts and figures, Explain logically that how would this strategy (Increase in taxation) affect the incomes and consumption of the people of South Korea? Note: Be specific in your answer. Write to the point in your own words. Avoid irrelevant details.

#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: [image: NXOYSoU.png] 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 [image: V1IqBov.png] (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: [image: H04fkFT.png] (Marking scheme: 2 + 2) 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 Pre Mid-Term 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.