# BBS 2nd Year Macroeconomics Question Paper 2078

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We have collected BBS 2nd Year Macroeconomics Question Paper 2078 with answers.

Subject Code: MGT 209

Time: 3 Hours

Full Marks: 100

Pass Mark: 35

## BBS 2nd Year Macroeconomics Question Paper 2078

Candidates are required to give their answers in their own words as far as possible. The figures in the margin indicate full marks.

Attempt All Question (10*2 = 20)

1. State the features of Macroeconomics.

2. What are the long-run determinants of Investment?

3. What are the methods of privatization?

4. Prepare a list of advantages of foreign employment.

5. What are the sources of Deficit financing?

6. Write any four assumptions of Say’s Law of Market.

7. Differentiate money flow and real flow.

8. What is meant by exchange rate.

9. Consider the saving function S=a+bYand interpret the components.

10. State the condition for labor market equilibrium according to classical economists.

#### Group B = Short Answer Questions (Any Five) (5*10)

11. (a). Derive tax multiplier.

(b). Suppose in an economy, the following data is given;

C= 200+b(Y- T), T = 500+tY

I = 100 , G = 500 , X = 100 , M = 50+0.1Y

The margin propensity to consume (b) = 0.7 and income tax rate (t) = 0.20

i. Find the equilibrium level of income

ii. WHat will be the effect on equilibrium income when government expenditure increases by Rs. 50 billion and the tax rate decreased by 5%.

12. Explain the dynamic analysis of macroeconomics. How does it differ from the macro-static analysis?

13. Suppose that the Nepalese economy has realized the following structural equations for the product and money markets.

C = 200+0.8(Y- T), T = Rs. 40 billion, Msp = 200-3000i, Mt = 0.5Y

I = 200 -2000i G = Rs. 100 billion, m = Rs. 400 billion

i) Compute the equilibrium rate of interest and output.

ii) It is realized that the Nepalese economy is trapped in an economic recession. Nepal Rastra Bank has implemented a contractionary monetary policy. As a result of money, the supply increased by Rs. 300 billion. The government of Nepal has supported NRB and increased its planned expenditure by Rs. 200 billion. What will be the simultaneous effect on the equilibrium rate of interest and output?

14. Mention the features of the budgetary policy of Nepal.

15. Describe the components of fiscal federalism.

16. Do you agree that globalization solves the economic problems like high employment, low productivity, BOP disequilibrium, etc, faced by developing countries Like Nepal? Give your critical Comment

#### Group C: Analytical Answer Question (Any Two) (2*15 = 30)

17. Consider the following figures for national income accounts:

a) Compute NNPmp by both income and expenditure methods.

b) Compute personal disposable income.

c) State the significance of real GDP in economic analysis.

d) What types of conceptual difficulties are encountered in the measurement of the GDP by-product Method?

18. Explain the principle of effective demand. How is it superior to the classical theory of employment?

19. Explain the principle of demand-pull inflation. How can it b removed by monetary and fiscal policies?