Macro Economics – BIM (TU) Question Paper 2014 | Fifth Semester

Download our Android App from Google Play Store and start reading Reference Notes Offline.

EconomicsTribhuvan University | Faculty of Management
BIM / Fifth Semester / ECO 202: Macro Economics
Year: 2014 (2071)

Full Marks: 60 | Time: 3 Hrs
Candidates are required to give their answer in their own words as far as practicable.

Attempt ALL questions
Group “A” – Brief Answer Questions: [10 X 1 = 10]

1. What are the types of macroeconomics?
2. State the aggregate production function, according to classical theory of employment.
3. Consider the LM equation,

Micro Economics Equation 1

and interpret the components
4. High price does not mean inflation. Why?
5. What is meant by debt management?
6. What are the components of net private domestic investment?
7. Compute super multiplier when s = 0.3 and v = 0.1.
8. What are the instruments of expansionary monetary policy?
9. Prepare the list of use of macroeconomics in business decision making.
10. What are the forms of globalization?

Group “B” – Short Answer Questions: [6 X 5 = 30]

11. Explain the process of computing GDP by value-added method with suitable example. Does this method avoid double counting? Give reasons.
12. Explain the principles of effective demand. Why is it superior than classical theory of employment?
13. Define demand-pull inflation. How can it be controlled by monetary policy?
14. Explain the depression phase of trade cycle. How can it be removed by the fiscal policy?
15. An attempt to increase in saving would actually lead to decrease in both income and saving. Elucidate this statement with suitable example.
16. Define economic growth and economic development. In what respects, they differ each other?

Group “C” – Comprehensive Answer Questions: [2 X 10 = 20]

17. (a) Using hypothetical consumption schedule, graph income and consumption lines and explain three propositions of psychological law of consumption function.
(b) Explain the process of income propagation in a two-sector economy with the help of suitable example.
18. Consider the following figures for national income and compute (i) GDPMP by both income and expenditure method and (ii) Personal income. [7 + 3]

DescriptionRs in Billion
Rental income
Business interest payments
Corporate dividends
Mixed income
Employer’s contribution to social security
Corporate profit
Personal taxes
Current transfer
Retained earnings
Consumption of fixed capital
Social security contribution
Indirect business taxes
Imports
Government investment expenditure
Net fixed capital formation
Net Receipts
Exports
Wages and salaries
Propriteor’s income
Government consumption expenditure
Consumption
Changes in stocks
Subsides
2,700
4,500
5,400
3,000
4,500
15,000
2,790
24,00
6,000
4,800
20,400
5,400
3,000
4,500
16,200
-1,200
2,160
66,000
9,000
9,000
79,440
-600
2,400

Posted By : MeroSpark | Comment RSS | Category : Bachelor Level, Tribhuvan University
Tag :

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*