SEMESTER FALL 2023

MACROECONOMICS (ECO403)
ASSIGNMENT
DUE DATE: 15TH NOVEMBER, 2023
MARKS: 10

The Case:
Libya is situated in North Africa. The economy of Libya is heavily
dependent on oil production and exports.
Suppose the economy of Libya is only producing two commodities i.e.;
wheat and oranges. Table-1 shows the quantities of these commodities
along with their prices for different years.
.
Table-1
Years Price of Quantity of Price of Oranges Quantity
Wheat per Kg Wheat per Kg Of Oranges
(Rs.) produced (Rs.) produced
2019 30 3000 kg 10 1000 kg
2020 31 5000 kg 15 2500 kg
2021 40 7000 kg 17 3500 kg

Requirement # 1:
Keeping in view the information provided in the above table for the
economy of Libya, Calculate;

I. Nominal GDP for the year 2021

II. Real GDP for the year 2021 (By taking 2019 as a base year)

(Note: Write down the formula and all relevant steps involved in the
calculation)
(Marking scheme: 2 + 2)

Requirement # 2:
Suppose the facts and figures of the economy of Libya for the year 2020
and 2021 is given below. Complete the missing values by using the
information given in the table.
 Items (Rs.) Year 2020 Year 2021

Consumption 35000 55000

Investment 15000 25000
Government expenditures ??? 35000
Net exports 10000 15000
Gross Domestic Product (GDP) 80,000 ???

(Marking scheme: 2 + 2)

Requirement # 3:
Suppose the facts and figures of the economy of Libya for the year 2021
are given below. Calculate the unemployment rate for the year 2021.

Note: Write down the formula and all relevant steps involved in the
calculation)

Year 2021

Population 6.87million

Real interest rate 5.5%

Inflation 3.5%

No of employed people 5,00,000

No of unemployed people 3,50,000

(Marking scheme: 02)

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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.