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College of Administrative and Financial Sciences
Deadline: 04/04/2020 @ 23:59
Course Name: Macroeconomics
Course Code: ECON201
Student’s ID Number:
Academic Year: 1440/1441 H
For Instructor’s Use only
? / 30
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Problem 1 (10 marks)
Suppose GDP equals $300 trillion, consumption equals $24 trillion, the government spends $3
trillion and has a budget deficit of $500 billion.
Find public saving, taxes, private saving, national saving, and investment.
Problem 2 (10 marks)
You take $500 that you held as currency and put it into the banking system. The reserve ratio is equal
1) Calculate the money multiplier.
2) By how much will increase the total amount of deposits in the banking system?
3) By how much will increase the money supply?
Problem 3 (10 marks)
At the begening of 2018, a town has 152,000 employed people and 8000 unemployed people. The
people in the town are not in the labor force.
Based on these numbers:
1) Calculate the town's unemployment rate
2) Calculate the town's labor force participation rate
3) Calculate Suppose that 10,000 people decide to join the labor force. Of these 10,000 people
7,800 find jobs. What is the unemployment rate at the end of 2018?