SEMESTER SPRING 2024

MACROECONOMICS (ECO403)
ASSIGNMENT
DUE DATE: 1ST MAY 2024
MARKS: 10

The Case:
Bangladesh is a south Asian country. Population of Bangladesh is more
than 160 million. Key sectors of the economy are garments, agriculture,
and remittance while challenges are poverty, infrastructure development
and environmental sustainability.
The consumer price index is a crucial economic indicator that measures
changes in the average price paid by the consumer in an economy. CPI
serves as a vital tool not only for individuals but also for businesses and
policy makers to monitor the inflationary pressure and economic
conditions.
Suppose the economy of Bangladesh is only producing and consuming
two commodities i.e., wheat and bread. Table-1 shows the quantities of
these commodities along with their prices for different years.

Table-1
Prices (Rs.) Quantity
Years Wheat Bread Wheat Bread Cost of basket CPI
2021 7 5 100 50 ? ?
2022 9 6 100 50 ? ?
2023 10 7 100 50 ? ?

Requirement # 1:
Keeping in view the information provided in the above table for the
economy of Bangladesh, complete the missing values.

Note :(By taking 2021 as a base year)

(Marking scheme: 1 + 1 + 1 + 1 + 1 + 1)
Requirement # 2:
GDP deflator is used to measure inflation or deflation in an economy.
Suppose the facts and figures of the economy of Bangladesh for the year
2019, 2020 and 2021 is given below. Complete the missing values by using
the information given in the table.

GDP deflator
Years Nominal GDP Real GDP GDP deflator
2019 Rs. 55000 Rs. 55000 ?
2020 Rs. 60000 Rs. 57000 ?
2021 Rs. 63000 Rs. 58300 ?

(Marking scheme: 1 + 1 + 1)

Requirement # 3:
Suppose in the economy of Bangladesh, for year 2024, labor force is 90000
and number of employed people are 50000. Calculate the number of
unemployed people for this economy for the year 2024.

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

(Marking scheme: 1)

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.