Macroeconomics exam paper 2075


We present Macroeconomics exam paper 2075 with all the answers.

Macroeconomics exam paper 2075

Following are the question asked in 2075 with their answers.

Group – ‘A’ – Brief Question Answer

1. Macroeconomics is the study of aggregates. Give reasons.

= Macroeconomics is the study of very larger, economy-wide aggregate variables like GDP, price-level, unemployment, economic growth, etc. Hence, it is the study of aggregates.

2. What is voluntary unemployment?

= The situation in which people are not working because of their choice is called voluntary unemployment. In simple words, it is voluntary nonworking. Following are the reason behind it 

a. Not working due to laziness or

b. They are not interested to work at the existing wage rate. 

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

4. Define Deflation.

5. What are or state the motive of demand for money according to Keynes.

6. What are the methods of deficit financing.

= The methods of deficit financing are:

a. Borrowing from Central Bank.

b. Withdrawals of cash balance from the central bank.

c. Issue of new currency.

d. Market borrowing.

7. State the methods of privatization. 

= The method of privatization are as follow

a. Selling shares of public enterprises.

b. Selling the property of public enterprises.

c. Leasing the property of public enterprises

d. By giving management contracts to public enterprises to the public sector.

8. Distinguish between absolute poverty and relative poverty. Answer: CLICK HERE

9. Transfer payments are excluded from GDP. Why? 

10. Write any four demerits of foreign direct investment.

Group ‘B’- Short Question Answer

11. Calculate – a. National Income, b.Personal Income, c. Disposable income from the following data:

S.NItemsRs. in Crore
1Wage 420
3Corporate Income Tax200
4Transfer payment375
6Personal Direct Taxes550
8Social Security Contribution125
9Undistributed profit200
11Net Income from abroad750

12. Explain the psychological law of consumption.

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

14. What is the money supply. What are its determinants? 

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

Aggregate output/incomeConsumptionPlanned Investment

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

Group ‘C’ – Long Question Answer

17. Define monetary policy. What are the major instruments of monetary policy?

18. What is meant by investment multiplier? Explain the process of income generation by multiplier process. 

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

Other Important Links

Model Question Paper of Macroeconomics: CLICK HERE

Job Vacancy in Nepal: CLICK HERE