Top Sheet FEDERAL URDU UNIVERSITY OF ARTS, SCIENCE & TECHNOLOGY, Karachi. we oUaliha Raees Muhammad Raees Father's Name ca, BBA cenere tll Sec "A" sravemai SUAliharaees@gmail.com sean 10052031 Macro ECONOMICS _ couse cow rc Subject oae_3-OCtober-2020 Regular Department of Business Administration Abdul Hao Camous Reguiar Repeater, Scanned with CamScannerQueslion 1 (a) Solution . GNP = !1,000 M Dep = 10,000 M Indirect Tax = 50,000 M Subsidies § M NI ak market pria = ? NT ak Fodkor Cost =? fy NI at maskek pre + NI = GNP - Depauialion =_/7,000 - 410000 NTO = _},000m NT at Packer lost : NI _ NT + Subsides — = 7,000 + 80,000 tmp 4 I Indirect base Scanned with CamScannerQt (b) 4 Evromic used seal GDP becawe ibs aa a 7 lo 's qpod and Seuices at bare year price amd £ chow tke belter omd true indicalor of- Eppnomdic _ development Aother than nominal GDP which ore measued a County yrs food good % Sexvices ak durvent year paice amd show whlabion « Q:4 (c) Calusa tke national Income : Solulion: (pr Expo dddine Method) NeI = Private Consumption + Govt tep + Snvestmenk + Nek Export - Depnuiabion = 10+ 144 2444-2 NIz 50 Question + 02 () when AD= AS The Eqpiloaiume is neached only when AD= AS, Bt this level thee is mo Pendemay Jer income and Output b chamge - Scanned with CamScannereg come Joul pub Tn ke diagram, € is the Equilcbrivn Level. if AD > AS 550 dead Ke Unwanted increake in bnvenlory 5 frinn reduce the Oupul AL AD = AS. or | if AS>AD, hen inventory tedue TU Ike Sri amd imerilony ts nSauol state iy when __Sovmg = Snvestment S$=T, when there is mo fendeney bb change wm Treome Output [Snome Scanned with CamScannerSn is diagram , Em ke _ Eqpibibrimns devel Jb I>s, AD>AS, be rathed te gquilbrium Sevel, vine wl ¥ imerecire, Ike product on if I1AD, dren lhe fer vl dewean it produotion ty staded the level of N-L 2 Question 5 ny 2009 2009 2009 2009 | Quomdicy | Pate (&))| Nominal GDP/Real GDP Food | 5 10 50 _ | ; Ao thes, u 50 200 Entertainment | 2 30 60 | oe Read GDP od Nominal GDP au Some because Ihe bow \yeon is 2009. 2010 | Quantity Price Ineentoad go> Real GDP Food | oT 20 | tt Clothes a | 80 Z| 120, [ “450 —_ Entertoinment | 4 als 160 | 4120 | 1020 | 640 Sn Real GDP 5 al we Ube bar year . 2009. iy Pe y (a) The nominal GDP in 2040 = 1020 (b) The real GDP in 2010 = 64 Scanned with CamScanner— Queslion AE 4 - (a). 4) The key os macioeconomic Vortables are | GDP (sate eased by lonsumer Spending, Private Snvestrment , | Got Expercllint,and net exgert), Em ployment indicator (which chow tea vale of worlting fopulabion), CPI (onsumer Paice Index) | Snkerest ack , GNI ( Gross nahsnal Income)» HDT (Hamar develop vedicalin), seYalion «Thee ow te key ef E:onomi Vawtabsle The best indicator lo define welfare stale is GDP, employment nati amd HOL- because in Economic wWelforre stale we measured b Vie well-being of dtisen. specially mm Sodas and Proancial weed - (b) AD= C+I+Q+X Tuts ty the mnatheralrc o regala. cleenand, whore - au Frew iu “a4 C= Consumption T = Snvestrnent G = Government txpendilor X = Net Expat. , where X is Export - Jenport . dd atl elements ty ladda Ke sige af Our Economy AD= C+I Scanned with CamScanner© Snuome _| Consumption Boverwenk | AD (+1) o | 50 4o | 90 200 | 140 40 | 180 400 | 230 4o 270 600 | 320 40 360 800 | 410 \ 40 450° Juboromnus Snwstnont. { 2 CC+T) A-0 | Scanned with CamScanner