Summer 2020 Semester: MBA Program
ECO 502: Macroeconomics and Business Forecasting
Assignment
Submission date: 11Th August, 2020
Please carefully read the guidelines for submission:
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Plagiarism and breach of academic integrity will not be acceptable.
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You can send picture(s) of your hand written answers or you can send MS Word documents of your
typed answers
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If you use any letter symbols, explain what those stands for
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Email your answers to both of these emails: maislam@bracu.ac.bd, priyadarshini@bracu.ac.bd
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The subject of your email should be like this: ECO 502–Assignment 1 – Student ID. For example, if
your student ID is 19263080, your email subject should be:
ECO 502–Assignment 1 –19263080. If your email subject is something ambiguous like “quiz”, “my
quiz”, etc. then it will not be acceptable.
You are given the following information about an economy
GDP=6000
Disposable income=5100
Budget deficit= +200
Consumption=3800
Trade deficit= -100
On the basis of relevant national income accounting identities calculate:
(a) How large is saving (S)?
(b) How large is investment (I)?
(c) How large is government spending (G)?
In each case, show the derivation of relevant identity which forms the basis of the calculation
and fully explain the letter symbols.