Assignment 1 Economic Environment PGP 26(D &E) and PGP Finance 03 Prof Ashok Thomas Name: Udarteo' Fipotta’ JAnuy) TRIPATHI Section and Rollno: TD ' PGP/26/204 Instructions * Write your name and roll number in capital letters, * Ifyou can’t solve the questions please consult with your friends and understand how we reach the answer. Remember honestly performing these activities will help you in other evaluation components. ‘Write your answers in the space provided using pen or pencil Strictly handwritten). Scan and attach the document on Moodle (VC). DEADLINE: SUNDAY OCTOBER 30,2022 (11 PM) Link for data: https://pib gov.in/PressReleasePage. .aspx? PRID=1829784#:~:text=GDP%20at%20Consta 101%20(2011%2D12,a%20growth%200f%204.1%20percent. Question 1) Collect the Q4 2021-22 GVA decomposed figure and the expenditure side of GDP. (Both data are released at current and constant prices) ‘A) Using the GVA which sector has positive growth and which sector have registered lowest growth? Fubticn Alanna (Diferine aml our Laver, shoul a FF y, Change Positine roe) oleng asitle a Positive C.4(% Change bo obs oud aan e at Matie pris Cie 2010-12). Ae Currant fiw, Ha higgue ivpar is ouatil fo Mining and o ‘ Prolery susith, a 499% groctt., follouuel Ly grovtin 21.27, a wees Aoyuees, fublic atotrulnihration, Aufenue aul otur, Wels howe grrr at 138) at cornet Pris JAE 201012 Bieu, Mauuyochurinp sector far kom the olip Little OI growth followed conaBuuction pyitls 2 ‘1. Goriott, bn eo Aaw bu Hgrberd tv Jv emamaifechonry at fo.ry, flour oy Financial kal Clots y Frofussional wuuiiees ulth growl. rate sh 194.8) Compare across the three sectors and which sector growth has been seen as a pusher for higher employment generation and discuss how this sector growth can affect the demand side of GDP in the coming quarters. GVA growtt. robe we Haw detore abu d4 - *Pimory Hit, + deonelony - 168% ° Duk SH Sdowiew betray Lrol tho growth 40x the Tae oe + |\Gowt iw thy aedsy com omabl, tu! Alyto, Alefaabte Luge fer mara anol more -propl. employ oh ine the dela shel eee gee i tatig best to the trntumn Lutinut dum rong bane fatigues ms rey bmn frabilling grousths C) Using the information from expenditure method, please discuss the trends. What is the consumption growth, Investment growth and NX growth rate based on Q4 2021-22? ° |GP embacld hy 28:8 % oe) Qt 2020-21 ctur 10 enue 9f CoviD-14 = vote, dud 0 rapier rucoutnay cluding GL Dorr woth, Dory, growte ade Sn Oy 2020-21 we ser arr Wereare LO the geverrent axfemefe: tw with, ef pivate a aeelee, C6.U%f Conan, Unvuasy Yultte veorormey of sucovny « dnd Reet a 2021-22 poet Go PF CE fh * | Grou bites poate. tooln o Lit ol pamclemeg, bse QI 2020-24 oloncae 4, US.QYh, Howmur, Hh Daw Heepertof hy QI 2001-22 wit an Unrtose of B84 e/fom Previous note, 4, Was ww. Abreng trench olux to inrtaw ty gown.trpnditwr amd tao Mpeg clone iy ydurrmrment. QY 2021-22 5- Comumption grout ~ PCE growlh- IRI. GRCE - 48 y. CBE + Gov sontumptton qpowtle = 2-267.) Srsatrumts goecoth= S:1°h grauste Nut Scont growth = 92-94", qreustt D) Calculate the GDP deflator for the Q4 2021-22 and Q4 2020-21 using the formula we learned in class. Hint: Use the expenditure side of GDP. GDP saplator > Nominal GOP 4, Rol CDP * for @Y Lori-22= 66/5285 yy 2 [6200 4ors02s * fe Oy dor0-21 = SHSFOY yicn . (46.95 sats £) Calculate the inflation rate between these two quarters described in the deflator question. Inflation. fats = CDP olsflatoy of, O4 21-22 - GDP clflay Hay 2o2 GDP olflatr f OY 20-21 = 162,22 -146.95 146.95 XlOo = 10-89% (osF) Calculate the growth in Nominal GDP, Real GDP between Q4 2021-22 and Q1 2020- 2021. Crowth Go oe dinar nontnan 6 — CDP 4 Oy oor-2 - CDP of V1 r021-22 : Caen CDP oF OF 2020-24 [eg = OGNS,29S - B8FBUU3 49, BRTB4UQ = FU Hy Grow. tw = CDF of dy 20uU- 22 - Rot CDF a, dy 2OU- 22 GDP df 01 2020-4) 1 COf 4) 2020-9) = U0,48, 02s —~ 29,083,548 203,592 X (00 v SO. 8he \dima, kutpi Question 2) Using the CPI index given for Q4 2021-22 and Q4 2020-21 (Average of three months can be used as Quarter CPI Index) ‘A) Calculate the inflation rates between these quarters. 8) Compare with the inflation which we received from GDP deflator and analyse which is more accurate when we plug this inflation data, Ae cet for OY 2odI-22 = GB CPI fo O4Y 2020-91 - Ug doflation = 69-u aye { Pl Oy aber - coy Oy20-21 CPI Gyro } tABSky, Sflating Rote wie COG fo = 10.3% Snflation Rats seen cf} 2 9¥sey, CPL i onlay bnclucten & feet Aoothat Of good aml Hovrasfone iL ae Vw ony. Wwhirtas GD oliplater, consi Low prey & seule wliiels OL froolucrct Aso PP olftaly, dnetucta, When Cpl obis- cP giv, t > cl dunt awe omiy fd a ‘ye sslvuias GPP dablator i 4 A 4s colewtatial rast or yinty Ls. Catt ex tre Darras My alte OF dy, at aan fein bw mind, we vette seleek Hes Last inal Of Uflotion conticturing ate xltuational Vasa lite fe amine Glut consileing thats GDP alto. i omen Lorprehuniive Oa matou, it may Le Ott cade ag ion\= Ie Question 3) The following data is for Econoland: * 14,000 population # 10,000 are 16 years of Be and over « 400 are not working but actively looking for work # 6000 are working full time « 1,000 have stopped looking for work # 1,600 are retired # 1,000 are working part time and Wanting to work part time * 600 are working part time and want to work full time ‘A) What is Econoland’s labor force participation rate? 8) What is the unemployment rate? C) Intuitively address the relationship between LFPR and unemployment rate during business cycles. Unumbtoyed = Wad Ebley cal = 6000 + ovo +6c0 = 4600 Lobour fora = Unemployed + embloyed > $000 feorolomds. abou, forex faxticifotiow nal,~ Labour forex rg fof =3WO og 10,00 Unembloymmn Rote = 400 . os go00 Busing Recession » LEPR timoly Jp fatr Leeruur ,anany faiol-aft wwerkenr beeen Cbs couragtol andl give Up Lohiing, for fol. Lhe body t aw increas, iro umenpleyment role tote During suporalon, umbreflay nasal Ro Tuols 19 Grew {att Leow of Liphan joe ofbertunitien. Move and mre ffl. eek vu Bol Licking, to izle LPR.