New Model Question of Macro Economics of BBS 2nd year. We have provided the question and answers to the respective question.
Model Question of Macro Economics
The following are questions with answers.
Group – “A” – Brief Answer Question
1. What is Macro Economics? – Answer = CLICK HERE
2. If C=50+0.90Yd and I = 65
Where, C = Consumption
Yd = Disposable income
I = Investment
Find the level of income and consumption at equilibrium.
Solution:
C=50+0.90Yd
I= 65
For equilibrium national income and consumption
Y = C + I
or, Y = 50+0.90Y + 65
or, Y = 115+ 0.9Y
Y – 0.9Y = 115
or 0.1Y = 115
, Y = 115/0.1
or, Y = 1150
Putting Y = 1150 in the consumption function,
C = 50+ 0.9Y
= 50+ (0.9*1,150)
= 1,085
Hence, Equilibrium national income is 1,150 and consumption is 1,085.
3. Explain any two objectives of fiscal policy. – Answer: CLICK HERE
4. Calculate investment Multiplier if MPC 1/2, 2/3,3/4,4/5.
5. Point out the causes of poverty in Nepal.
6. Define IS curve.
7. Why do saving curves slope upwards?
8. What is speculative demand for money?
9. Explain any two benefits of foreign direct investment.
10. Point out the difficulties to measure national income.
Group- “B” – Short Answer Questions
11. “Saving is vice, not a virtue? Explain.
12. What is the trade cycle? Explain the prosperity phase of the trade cycle.
13. Define GDP and GNP and Calculate GDP at market price and at factor cost following data
| Items | Rs. in Crore |
| Net Indirect Taxes | 38 |
| Depreciation | 34 |
| Net Income from abroad | – 3 |
| Rent | 10 |
| Profit | 25 |
| Interest | 20 |
| Wages and salaries | 170 |
| Employer’s Contribution to SSF | 30 |
| Mixed-Income | 5 |
14. What is privatization? What is its benefit?
15. Complete the following table and answer the given question.
| Y | C | S | APC | MPC | APS | MPS |
| 0 | 50 | |||||
| Rs. 100 | 125 | |||||
| Rs. 200 | 200 | |||||
| Rs. 300 | 275 | |||||
| Rs. 400 | 350 | |||||
| Rs. 500 | 425 | |||||
| Rs. 600 | 500 |
From the above table explain the relationship between APC and MPC.
16. What is the investment? Discuss the important determinants of investment.
Group- “C” – Long Answer Questions
17. Explain the Keynesian theory of employment. What criticism had been made against this theory?
18. What is inflation? Suggest the measure to control inflation. Answer: CLICK HERE
19. What is economic growth? Explain the sources of economic growth with reference to Nepal.
Other Important Links:
BBS 2nd Year all subject Notes: CLICK HERE
Question Paper with the answer of 2075: CLICK HERE
Macro-Economics Notes: CLICK HERE
Job Vacancy in Nepal: CLICK HERE
