AIOU Solved Assignment Code 358 Economics-II (Usool-e-Maashiyat) Autumn 2025 & Spring 2026 PDF Free Download

Are you looking for the updated and complete AIOU Solved Assignment Code 358 Economics-II (Usool-e-Maashiyat) for the Autumn 2025 and Spring 2026 academic semesters? You have arrived at the official, student-verified study resource portal! At aiou.net.pk, we provide 100% accurate, syllabus-aligned, and top-scoring solved assignments in free downloadable PDF format tailored specifically for Intermediate (FA / I.Com) students of Allama Iqbal Open University (AIOU).

Every assignment solution below has been meticulously prepared by seasoned educationists and subject matter experts in accordance with the official 9-unit textbook syllabus issued by the university. Whether you need model answers for Assignment No. 1 (Units 1–5) or Assignment No. 2 (Units 6–9), this comprehensive study guide equips you with authentic questions, in-depth academic solutions, textbook syllabus outlines, submission deadline tables, and step-by-step submission instructions to help you secure 80+ marks in your continuous coursework assessment.

Course Code 358 Specification & Academic Overview

Before preparing and submitting your coursework, review the official academic parameters for Course Code 358 outlined in the university prospectus:

Course Parameter	Official Academic Specification
Course Code	Code 358
Subject Name	Economics-II (Usool-e-Maashiyat)
Academic Program	Intermediate (FA / I.Com)
Program Level	Higher Secondary School Certificate (HSSC)
Credit Hours	6 Credit Hours (Elective Economics)
Minimum Passing Marks	40% (Continuous Assessment + Exam)
Assignment Submission Mode	Handwritten (Dispatch to Assigned Tutor via Post)
Official Textbooks & Soft Books	Download Code 358 Book PDF
Tutor Allocation & Address Check	Find Assigned Tutor on CMS Portal
CMS Portal Student Login	AIOU CMS Portal Login Guide

Download AIOU Solved Assignment Code 358 Free PDF

Students can download both solved assignments for Course Code 358 for the current academic session completely free of charge. Click on the respective download buttons below to access high-quality reference solutions:

AIOU Solved Assignment Code 358 Solved Questions & Model Answers

To assist students who wish to understand the conceptual depth required for university examinations, we have transcribed verified model solutions to key assignment questions below:

Assignment No. 1 – Question 1

Question: Define Gross Domestic Product (GDP) and Gross National Product (GNP) and explain the three methods of measuring National Income.

Model Answer:

Gross Domestic Product (GDP) represents the total monetary market value of all finished goods and services produced within the geographic borders of a nation during a specified financial year. Gross National Product (GNP) incorporates Net Factor Income from Abroad (NFIA): GNP = GDP + NFIA. National income is measured via three approaches: 1. Output / Product Method: Sums the gross value added across all productive sectors (agriculture, industry, services), subtracting intermediate consumption to eliminate double counting. 2. Income Method: Aggregates total payments distributed to the factors of production: Rent (Land) + Wages (Labor) + Interest (Capital) + Profits (Entrepreneurship). 3. Expenditure Method: Sums total national expenditures: Consumption (C) + Investment (I) + Government Purchases (G) + Net Exports (X – M).

Assignment No. 1 – Question 2

Question: Explain the functions of Money and state Irving Fisher’s Quantity Theory of Money (Equation of Exchange).

Model Answer:

Money performs four classic functions: 1. Medium of Exchange (eliminates the double coincidence of wants inherent in barter). 2. Unit of Account (standardized measure for pricing goods). 3. Store of Value (preserves purchasing power over time). 4. Standard of Deferred Payment (facilitates contracts and credit agreements). Irving Fisher formalized the classical Quantity Theory of Money via the Equation of Exchange: M * V = P * T, where M is money supply, V is transaction velocity of money, P is general price level, and T is volume of real transactions. Assuming V and T remain constant in the short run due to institutional and full-employment rigidities, a direct proportional relationship exists between money supply and the general price level: doubling M doubles P.

Assignment No. 1 – Question 3

Question: Illustrate how Commercial Banks generate credit money through the Multiple Deposit Expansion mechanism.

Model Answer:

Commercial banks create derivative deposits by lending out excess reserves. When a customer deposits an initial primary cash deposit of Rs. 100,000 in Bank A, and the State Bank mandates a Cash Reserve Ratio (CRR) of 10%: Bank A legally retains Rs. 10,000 as cash reserve and loans out the remaining Rs. 90,000. When the borrower deposits this sum in Bank B, Bank B keeps 10% (Rs. 9,000) and lends Rs. 81,000 to another borrower. This fractional-reserve banking cycle continues across the banking system. The Credit Multiplier formula is: Multiplier = 1 / CRR = 1 / 0.10 = 10. Consequently, the initial Rs. 100,000 primary deposit expands into total derivative deposits of Rs. 1,000,000 (Rs. 100,000 * 10), generating Rs. 900,000 in new credit money.

Assignment No. 2 – Question 1

Question: Differentiate between Demand-Pull Inflation and Cost-Push Inflation and discuss monetary measures to curb inflation.

Model Answer:

1. Demand-Pull Inflation occurs when aggregate demand exceeds the aggregate supply capacity of the economy at full employment (“too much money chasing too few goods”), driven by excessive credit expansion, government deficit spending, or surging consumer confidence. 2. Cost-Push Inflation arises from supply-side cost increases—surging global crude oil prices, raw material shortages, currency depreciation, or escalating wages—shifting the aggregate supply curve backward. To curb inflation, the central bank enacts Contractionary Monetary Policy: elevating the policy discount rate (increasing borrowing costs), conducting Open Market Operations (selling government securities to absorb liquidity), and raising the statutory Cash Reserve Ratio.

Assignment No. 2 – Question 2

Question: Explain David Ricardo’s Theory of Comparative Advantage and evaluate its benefits in international trade.

Model Answer:

David Ricardo demonstrated that even if one nation holds an absolute advantage in producing all goods, mutually beneficial international trade is still achievable if each nation specializes in producing and exporting goods in which it possesses a lower Opportunity Cost (Comparative Advantage), and imports goods with a higher opportunity cost. Specialization according to comparative advantage expands total global production output beyond isolated domestic production possibility frontiers, promotes efficient allocation of planetary resources, fosters technological knowledge transfer, and enables consumers worldwide to access cheaper, diverse consumer goods.

Complete 9-Unit Textbook Syllabus for Course Code 358

Allama Iqbal Open University structures this 6-credit / 3-credit curriculum across nine cohesive instructional units. Students must thoroughly study each unit to master both assignment questions and final examination papers:

Unit Number	Official Unit Title	Core Conceptual Focus
Unit 1	National Income Concepts: GDP, GNP, NNP & Disposable Income	Gross Domestic Product, Gross National Product, Net National Product, Personal Income, and Disposable Personal Income.
Unit 2	Measurement of National Income & Practical Difficulties	Product method, income method, expenditure method, double counting, and non-monetized economic sectors.
Unit 3	Money: Evolution, Functions & Quantity Theory of Money	Barter limitations, commodity to digital fiat money, medium of exchange, store of value, and Fisher’s MV = PT equation.
Unit 4	Commercial Banking & Credit Creation Mechanism	Balance sheet of commercial banks, primary vs derivative deposits, cash reserve ratio (CRR), and credit multipliers.
Unit 5	Central Banking: State Bank of Pakistan (SBP) Monetary Policy	Lender of last resort, currency issuance, discount rate policy, open market operations (OMO), and reserve requirements.
Unit 6	Inflation, Deflation & Macroeconomic Stabilization	Demand-pull inflation, cost-push inflation, Consumer Price Index (CPI), wage-price spirals, and contractionary policies.
Unit 7	Public Finance: Government Revenues & Fiscal Policy	Public vs private finance, direct vs indirect taxation, canons of taxation, progressive taxation, and deficit financing.
Unit 8	International Trade & Theory of Comparative Advantage	Domestic vs foreign trade, Adam Smith’s absolute advantage, David Ricardo’s comparative cost advantage, and tariffs.
Unit 9	Economic Development & Structural Planning in Pakistan	Characteristics of developing economies, agricultural bottlenecks, industrial backwardness, and Five-Year development plans.

How to Submit AIOU Solved Assignment Code 358

Submitting your coursework in accordance with official university protocols ensures your marks are awarded without delays. Follow the mandatory procedure for your program:

Handwritten Submission Guidelines (Matric, FA & BA / Associate Degree):

1. Neat Handwriting: Write your assignments neatly on single-sided A4 lined paper using blue or black ink. Avoid cutting and overwriting.
2. Three Dispatch Slips (Partal Form): Attach three copies of the official university Assignment Dispatch Slip (Purt Form) to the front of each assignment. Clearly write your Student ID, Roll Number, Course Code (358), Semester, and Assigned Tutor’s name and address.
3. Tutor Verification: Check your allocated tutor’s mailing address on the AIOU Tutor Search Portal.
4. Postal Dispatch: Dispatch your assignment package via Pakistan Post Registered Mail or trusted courier service (TCS, Leopards) prior to the official deadline. Retain the postal booking receipt until your final semester result is announced on CMS.

Official Assignment Submission Schedule (Spring & Autumn)

Late submissions are strictly rejected by the university examinations department. Adhere to the following submission timeline:

Assignment Number	Autumn Semester Deadline	Spring Semester Deadline	Academic Units Covered
Assignment No. 1	Mid-November	Mid-July	Units 1 to 5
Assignment No. 2	Mid-January	Mid-September	Units 6 to 9

Frequently Asked Questions (FAQs)

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