Macro Economics Exam Paper 2075 | BBS 2nd Year

Tribhuvan University, BBS 2nd Year Macro Economics Exam Paper 2075. See the question paper and do preparation for your exam. Stay with us for more and important latest updates. This is the question paper of Macro Economics Exam Paper 2075 BBS Second Year.

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Table of Contents

Tribhuvan University

2075

BBS 4 Years Program/ II Year/ MGMT | Full Marks: 100

Macro Economics (MGT 206) | Time 3 hrs.

Candidates are required to give their answers in their own words as far as practicable.

The figures in the margin indicate full marks.

Group A

Brief Answer Questions [10×2=20]

Attempt all quesitons

1. Macro economics is the study of aggregates. Give resona.

2. Transfer payments are excluded from GDP. Why?

3. The consumption function of an economy is given C = 60+0.8y were y is national income. If the investment in a year equals to 65 crore, what will be the equilibrium level of national income.

4. Define deflation.

5. State the motives for demand for money according to Keynes.

6. Write the methods of deficit financing.

7. State the methods of privatization.

8. Distinguish between absolute poverty and relative poverty.

9. What is voluntary unemployment.

10. Write any four demerits of foreign direct investment.

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Group B

Short answer questions [5×10=50]

Attempt any five questions.

11. Explain the psychological law of consumption.

12. What is induced investment? Explain the long-run determinants of investment.

13. Explain the effects of inflation on production and distribution.

14. Define money supply. What are its distribution.

15. Calculate – (a) National income (b) Personal Income (c) Disposable Income from the following data:

  Item (Rs. In Crore)
1 Wage 420
2 Rent 200
3 Corporate income tax 200
4 Transfer payment 375
5 Dividend 500
6 Personal direct taxes 550
7 Interest 250
8 Social security contribution 125
9 Undistributed profit 200
10 Mixed income 525
11 Net income from abroad 750

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16. Consider the following table and answer the questions given below:

Aggregate output/ Income Consumption Planned Investment
400 410 20
450 450 20
500 490 20
550 530 20
600 570 20
650 610 20
700 650 20
750 690 20

(a)  At each level of output calculate saving, APC and MPC. What is the equilibrium level of output?

(b) Let the planned investment increases by 30 units. Recompute the table and calculate the equilibrium level of output.

Group C

Long answer questions [2×15=30]

Attempt any two questions.

17. What is meant by investment multiplier? Explain the process of income generation by multiplier process. (5+10)

18. Define monetary policy. What are the major instrument of monetary policy?

19. Explain the current foreign employment situation in Nepal. What are the benefits of foreign employment in developing countries like Nepal?

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