ALL MACROECONOMICS EXERCICES

By: Ali Chraibi

• GDP EXERCICES:
Exercice 1:
This is to calculate the GDP using the value added approach:

Remark : when we don't specify which subsidies or taxes it is, then it means that it's on product
not on production.

correction of the exercice:

GDP at basic price:
140000+69900+22000 = 231,900
gdp at market price :
231900+130000 -35000= 326,900

Exercice 2:
This is to calculate the GDP using the value added approach:
correction of the exercice :
value added at factor cost = 130000-41000 = 89000

gdp at basic price :

89000+ 9300-6400 = 91900
gdp at market price:
91900 +3000-2000 = 92900

Exercice 3:
This is to calculate the GDP using the expenditure approach:

Correction of the exercice:

Net export = exports – imports
Net exports = 2.2 - 2.7= -0,5

GDP= 12,8+3+3,3+(-0,5)
GDP= 18,6

Exercice 4:
This is to calculate the GDP using the income approach:

Correction of the exercice :

GDP= 1200 +300+400+120+90+350
GDP = 2460
Exercice 5:
This is to calculate the GDP using the income and value added
approaches:

Correction of the exercice:

GDP using the value added approach:
GDP = 500000-180000 -10000-10000-40000
= 260000

GDP using the income approach :

Let’s first calculate the profit of this company:
Profit = Total revenue – total charges
Profit = 500000-470000 =30000

GDP= profit + sales taxes +wages + social security contribution +interest + depreciation
30000+ 50000+80000+50000+20000+30000= 260000
Exercice 6:
This is to calculate the GDP using the 3 approaches

Remark : when they tell us to calculate the GDP, it means calculate the GDP at market price not
basic price.

Correction of the exercice:

GDP using value added approach:
GDP at market price: value added at basic price +taxes on product - subsidies on product.
1531,3+ 196,9- 18.1 = 1710.1

-GDP using the expenditure approach:

private consumption+ private investment - import + export
1381.6+344.7+446.3-462.6 = 1710

GDP with the income approach = GOP + employees compensation + taxes on production -
subsidies on production
582 +891.1+ 270.6 - 33,7 = 1710
Exercice 7:
This is to calculate the nominal and real GDP

Correction of the exercice :

Nominal gdp for 2019 :
(100x600)+(120x700) = 144000
Nominal gdp for 2020 :
(86x660)+(110x850) = 150260

real gdp = quantity of current year x prices of last year.

real gdp of 2020 = quantity of 2020 x prices of 2019

Real gdp of 2020 :

(86x600)+(110x700) = 128600

Interpretation: by looking at the results of the nominal GDP, it may seem to us that the
economy is performing better from 2019 to 2020. However, after calculating the real GDP of
2020, we can see that it’s not the case and that it’s actually the opposite.
Exercice 8:
This is to calculate the nominal GDP, real GDP and GDP deflator

• Correction of the exercise:

the GDP deflator of the base year is always equal to 100 so the GDP deflator of 2019 = 100

Let’s first calculate the nominal and real GDP of 2020 to be able to calculate the GDP deflator.
nominal gdp of 2020 :
86x660+110x850 = 150260
real gdp of 2020 :
86x600+110x700 = 128600

gdp deflator of 2020 :

nominal gdp/real gdp x100 =
(150260/128600) x100 = 116.8

interpretation:
what's after the 100 of the deflator is the inflation rate so the inflation rate was around 16,8%
and if it was less than 100, for example 93, then it would be a deflation of 7%.
Exercice 9:
This is to calculate the nominal GDP, real GDP, GDP deflator and the
growth rate

Remark : Annual growth rate is comparing the year of analysis with the year before it.
Correction of the exercice :
• gdp deflator of 2017
(nominal gdp/real gdp) x 100
(29430/18560) x 100 =
= 158.56
• nominal gdp of 2018=
nominal gdp = (gdp deflator x real gdp)/100
(105,58x21397)/100 = 22590
• real gdp of 2019 =
(nominal gdp x100)/ gdp deflator=
22900x100/ 92.18 = 24842.6

let's calculate the growth rate of each year :

growth rate = [(value of period 2 - value of first period) divided by the value lf first period} x100

• annual growth rate of 2017 =

{(18560 - 19000)/19000} x100 = -2,31%
• annual growth rate of 2018 =
{(21397-18560)/18560} x100 = 15,28%
• annual growth rate of 2019 =
{(24842.6-21397)/21397} x100 = 16.10%

let's calculate the growth rate using the base year (2016) =
• For 2017 :
{(18560 - 19000)/19000} x100 = -2,31%
• For 2018 :
{(21397 - 19000)/19000} x100 = 12.61%
• for 2019 :
{(24842,6 - 19000)/19000} x100 = 30,75%
Exercice 10:
This is to calculate the nominal GDP, real GDP, GDP deflator and the
growth rate

Correction of the exercice :

For this exercice we’ll use 2 rules :
1) GDP deflator = (nominal GDP/real GDP) x 100
2) growth rate = [(real GDP of period 2 – real GDP of period 1) / real GDP of period 1} x100

For 2017 :
Real gdp of 2017 :
(nominal gdp x100)/ GDP deflator=
(29430 x100)/ 158,56 = 18560,80

Growth rate of 2017 (with base year 2016):

It’s the same as the annual growth rate of 2017 so it’s -2,31%

For 2018 :
Real GDP of 2018 =
We will use this : growth rate = [(real GDP of 2018 – real GDP of 2017) / real GDP of 2017} x100

real GDP of 2018 = (annual growth rate 2018/100) x Real GDP of 2017 + Real GDP of 2017
= (15,28%/100) x 18560,8 + 18560,8
= 18589,16

Nominal GDP of 2018:

nominal gdp = (gdp deflator x real gdp)/100
= (156,84 x 18589,16)/100
= 29155,23
Growth rate of 2018 (with base year 2016):
growth rate = [(real GDP 2018 – real GDP 2016) / real GDP of 2016} x100
= [(18589,16-19000)/19000} x100
= -2,16%

For 2019 :
Gdp deflator:
GDP deflator = (nominal GDP/real GDP) x 100
=(38800/20360) x 100
= 190,57

Growth rate of 2019 :

growth rate = [(real GDP 2019 – real GDP of 2018) / real GDP 2018} x100
= [ (20360-18589,16) /18589,16} x 100
= 9,52%

Growth rate of 2019 (with base year 2016):

growth rate = [(real GDP 2019 – real GDP 2016) / real GDP of 2016} x100
= [(20360-19000)/19000} x100
= 7,15%

Exercice 11:
This is to calculate the GDP per capita :

Correction of the exercice :

Let’s first convert the 6 billions of the income to millions in order to have the same unit as the
population
6 billion = 6000 millions

Gdp per capita = 6000/3

= 2000
 • INFLATION EXERCICES:

Exercice 12:
This is to calculate the market basket, CPI and the inflation rate :

exercice to practice :

Correction of the exercice :

-market basket of 2019 :
(4x1)+ (3x3) + (8x10) = 93$
-market basket of 2020 :
(4x2)+ (3x6) + (8x20) = 186$
-market basket of 2021 :
(4x3)+ (3x6) + (8x25) = 230$

-CPI of 2019 :
(93/186)x100 = 50
-CPI of 2020 : 100
The CPI of the reference year (the base year) always equals 100
-CPI of 2021 :
(230/186)x100= 124

-rate of inflation between 2019 and 2020:

(100-50)/50 x 100 = 100%
-rate of inflation between 2020 and 2021 :
(124-100)/ 100 x 100 = 24%
 • UNEMPLOYMENT EXERCICES :

Exercice 13:
This is to calculate the unemployment rate :

Correction of the exercice:

Unemployment rate = 20000/560000 = 0,0357 = 3,57%

• HOUSEHOLDS INCOME EXERCICES:

Exercice 14:
This is to calculate the personal income :

Correction of the exercice :

Personal income = 100 000+8000+7500+3000+2000 = 120 500
Exercice 15:
This is to calculate the personal income :

Personal income = 8500 + 1350+ 1550 + 2800 + 1520+ 700

=16420

Exercice 16:
This is to calculate the personal income :

Correction of the exercice :

Personal income =
12288 -967-1090-418-315+2528 = 12026
Exercice 17:
This is to calculate the personal income :

Correction of the exercice :

Personal income = 4000 -50 -100 -200 +1000
=4650

Exercice 18:
This is to calculate the disposable income :

Correction of the exercice :

disposable income = 85000 – 34% = 56100

Exercice 19:
This is to calculate the disposable income

Correction of the exercice :

disposable income = 37270 +6300 -8300
= 35270
Exercice 20:
This is to calculate the personal and disposable income

Personal income = 12221-1009-979-467-344+2237 = 11659

Disposable income = 11659 – 1482 = 10177

Exercice 21:
This is to calculate the APC and APS

APC = 3600/5800 = 62,06%

APS = 37,94%
Exercice 22:
This is to calculate the disposable income, APC and APS

Correction of the exercice:

Disposable income = personal income + government benefits – direct taxes
= 8500 +200 -450
= 8250

APC : Consumption/disposable income) x100

5000/8250x 100 =60,6%
APS : (Savings/disposable income) x100
3250/8250 x100 = 39,4%

Interpretation: This consumer consumes about 60% of his disposable income and save about
40%
Exercice 23:
This is to calculate the APC, APS, MPC and MPS

Correction of the exercice:

1- Let’s calculate the APC and APS of the 1st and 2nd period :
1st period :
APC :
(7500/12000)x100 = 62,5%
APS :
100-62,5 = 37,5%

2nd period :
APC :
(8500/13200) x100 = 64,4%
APS :
100-64,4 = 35,6%

The data we have :

C1 : 7500
C2 : 8500
DI (1) : 12000
DI (2) : 13200

2- Let’s calculate the MPC and MPS :

MPC : (C2-C1) / (D2 - D1) = 1000/1200 = 0,83dh
MPS : 1-0,83 = 0,17dh

interpretation:
it means that for every additional dirham in the disposable income, this individual would assign
0,83 to the consumption and in consequence he will save 13 cents.
Exercice 24:
This is to calculate the real income

Correction of the exercice :

Real income = 1200 – (1200x2%) = 1176$

Exercice 25:
This is to calculate the disposable income, and the real income when
there’s the variation of the inflation rate

Correction of the exercice :

Diposable income = 1500-350 = 1150

Real income for the period of 2017 :

Real income = nominal income – (nominal income x inflation rate)
Real income = 1115,5

Real income for the period of 2019 :

Real income = nominal income – (nominal income x inflation rate)
Real income = 1173
Exercice 26:
This is to calculate the disposable income, and the real income when
there’s both the variation of the disposable income and the variation
of the inflation rate

correction of the exercise:

1- formula of the income variation rate : [(Income of the 2nd period – income of the first
period)/ income of the first period] x100
It will give us 3,37%

2- we compare inflation rate with the variation rate of the disposable income:
3,37%> 3%
james's purchasing power increase because price of goods and services are seen cheaper from
his point.

3- for the second period :

5%> 3,37%
james purchasing power decrease because the price of goods and services are seen more
expensive from his point of view.