BBS 2nd Year Macroeconomics Question Paper 2078

BBS 2nd Year Macroeconomics Question Paper 2078
BBS 2nd Year Macroeconomics Question Paper 2078

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

Subject: Macroeconomics For Business

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.

Group A: Brief Answer Questions

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:

DescriptionRs. in Million
Wages and Salaries44,000
Proprietor’s Income6,000
Government Consumption 6,000
Receipts from the rest of the world800
Private Consumption expenditure52,960
Changes in Inventories400
Rental Income1800
Net Interest3,000
Social Security contributed by employer’s3,000
Corporate Income10,000
Direct Taxes1,860
Current Transfer from the rest of the world5,000
Corporate Income Taxes2,400
Capital Consumption allowances3,200
Social Insurance Allowance13,600
Current Transfer from Government8,000
Indirect Business Taxes3,600
Government Investment3,600
Payment to the rest of the world1,600
Net Fixed Capital Formation10,800
Exports 1,440
Current Transfer from business firms3,000
Interest paid by the consumer4,000

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?

PDF of Numerical Answer: CLICK HERE

Other Important Links:

Job Vacancy in Nepal: CLICK HERE

Macroeconomics Notes PDF: CLICK HERE

Business Communication Question Paper 2078: CLICK HERE