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Styles Paragraph the magnitude of these changes? Justify your argument with suitable diagram(s). d. Suppose household believe that higher govt. borrowing is going to lead to higher taxes to pay off the govt. debt in the future. How this expectation of household is going to affect the private saving and the supply of loanable funds immediately? Does it increase or decrease the affects you have suggested in point (a) and (b)? 2 An emerging economy in 1985 has nominal GDP of 2,586 Bn and in 1990 Each part of the it rose to 3,035 Bn. Looking into the economic trend, the government has question carries 3 come up with new education policy to ensure higher enrolment of girl marks. child in the year 1991 with triple the fund allocation compared to the last budget, after 2011 macroeconomic data shows a dramatic increase in the (Theoretical base / women participation in the total labour force, especially the number of Diagrammatic registered women entrepreneur increased and the economy started to get explanation: 2 marks; more significant direct and portfolio investment in the country by a Self-interpretation of neighboring economy which is specialized in machine and machine tools the answer: 1 mark) industry. The entire economy initially encouraged the external support in terms more fund inflow, but when time progressed many citizens were not happy about these kind investments. This restless situati has created an uproar in all the markets and a riot outburst against the government lenient external policy to other economies. a. Describe in how many ways an education policy (related to girl Font Paragraph Styles I child) could lead to faster economic growth in this country. b. How do you think that the labour market scenario explained in the case would have affected the GDP? Justify your argument with appropriate diagram. C. Do you really think that an economy can over-invest in human capital? Justify your claim with the opportunity cost of investing in high productive capital. d. Why would the citizens create an uproar? What should be the government stand on the external policy decision? Should the economy encourage external investment inflow or not? Justify your arguments. e. Will the scenario presented in the case will affect the GDP components? If Yes, which component(s) it will affect; if No, why it does not affect. Justify your arguments with appropriate theoretical explanation. SECTION B Case Study Note: It is MANDATORY to attempt the Case study (1X20=20 Marks) Q. No Questions You are expected to form a NEW ECONOMY from the Rubrics Criteria Concentual clarity: 5