MACROECONOMICS

There are THREE (3) questions in this section. Answer ALL questions.

ATTENTION: PLEASE ANSWER EACH QUESTION ACCURATELY AND COMPACTLY FOR EACH MACROECONOMICS QUESTION EXCESS THE ANSWER FOR MARK.

Question 1

The population of Malaysia was estimated to be 33,140,178. Malaysia's labour forcecontinued to see improvements in January 2022, with all states having moved to Phase Fourof the National Recovery Plan. This growth was led by the continuous rise in employmentwhile unemployed trended down. The Malaysia had a labor force of 15,690,000 andunemployment of 680,000, the Department of Statistics Malaysia (DOSM,2022).

Answer the following questions and show your workings.

1. Calculate the unemployment rate.(3 Marks)

ANSWER:

2. Calculate the participation rate.(3 Marks)

ANSWER:

3. Calculate the employment ratio.(3 Marks)

ANSWER:

4. Recalculate the unemployment rate if 1 million previously discouraged workers re-enterthe workforce and start looking for work but do not immediately find employment.(5 Marks)

ANSWER:

(Total: 14 Marks)

Question 2

Table 1

	ipad Mini	Samsung Tablet	HPPocket PC
Year	Price (RM)	Quantity (unit)	Price (RM)	Quantity (unit)	Price (RM)	Quantity (unit)
2019 2020	2949 3029	300 450	2200 2400	500 600	2050 2230	600 800
2021	3159	500	2500	740	2350	800

Based on the Table 1 above calculate:

1. Nominal Gross Domestic Product (NGDP) 2020 and NGDP 2021.(3 Marks)

ANSWER:

2. Real Gross Domestic Product (RGDP) 2021 using 2019 as base year.(3 Marks)

ANSWER:

3. Gross Domestic Product (GDP) deflator 2020.(3 Marks)

ANSWER:

4. Inflation rate between 2020 and 2021.(3 Marks) ANSWER

(Total: 12 Marks)

Question 3

Malaysia's fiscal stance will remain expansionary this year to ensure that the recoverymomentum is maintained, economic scarring is minimized, and the economy returns to itsmedium-term growth trajectory. To accelerate the resumption of fiscal consolidation andensure the Malaysia's debt affordability remains manageable, the government hasundertaken efforts to implement additional reforms as the ministry aims for a deficit of 3% to3.5% by the end of 2025, (Zafrul, 2022).

Based on the above statement, discuss the expansionary fiscal policy implemented by thegovernment to support businesses and strengthen the nation's economy. Show the effectson disposable income, purchasing power, consumption and aggregate demand.

ANSWER:

(Total:15Marks)