Model Question of Macro Economics


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.



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.

Rs. 100125
Rs. 200200
Rs. 300275
Rs. 400350
Rs. 500425
Rs. 600500

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