BBS Macroeconomics for Business

What are the uses of macroeconomics?

What is comparative macro statics?

Write any four features of macroeconomics.

Describe the static analysis of macroeconomics.

Differentiate stock and flow.

Explain the uses of macroeconomics.

State the features of macroeconomics.

Differentiate money flow and real flow.

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

Let, gross fixed investment = 2000, changes in stocks = 50,depreciation = 500. Compute gross private domestic investment.

How is percapita income computed?

Explain the process of computing nominal GDP, real GDP, GDPdeflator and rate of inflation with examples.

Consider the following data for a hypothetical economy: br>

          a. Compute nominal GDP, real GDP, GDP deflator and rate of inflation.

           b. Why the real GDP is better measurement of welfare than nominal GDP?

Explain the process of measuring GDP by product method with examples. What types of conceptual difficulties are encountered in the measurement of GDP by product method?

Write any two differences between nominal GDP and real GDP.

What are the components of gross private domestic investment?

Industry A imports goods worth Rs. 200,000 from China and sells the goods to industry B for Rs. 40,000 and to industry C for Rs. 280,000. Industry B purchases goods worth Rs. 80,000 from industry M and sells the goods to industry C for Rs. 60,000 and exports in India for Rs. 160,000. Industry C purchases goods from industry N worth Rs. 60,000 and sells the goods to households for Rs. 680,000. Using this information, ....a. Compute GDPMP by value-added method.b. Does this method avoids double counting? Give reasons.

Consider the following figures for national income accounts:

\( a) \text{Compute } \text{NNP}_{\text{mp}} \) 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 GDP by product method?

Write any four types of unemployment.

How is labour market equilibrium attained? Explain

What are the components of labour market equilibrium?

Write any two implications of Say's Law of Market.

Flexibility in wage rates is the pre-condition for achieving labour market equilibrium. Justify.

Write any four assumptions of Say's Law of Market.

State the condition for labour market equilibrium according to classical economists.

Prepare a list of characteristics of Keynesian theory of employment.

What are the components of marginal efficiency of capital?

i)Describe the determinants of saving.iI)Let, S = -100 + 0.2Y, I = 60 + 0.1Y. Compute equilibrium income,saving and investment. What will be the equilibrium income,saving and investment when autonomous saving increases byRs 30 billion?

    a) Derive linear consumption and saving functions.

    b) Graph Yd, C+I , and C+I+\( \Delta I \)

    c) Determine equilibrium output. What will be the new equilibrium output when planned investment increases by 200 units? Is it consistent when it is computed by investment multiplier?

   d) What are the leakages of investment multiplier? Explain any two.

What is effective demand?

What are the assumptions of psychological law of consumption function?

Derive investment and tax multipliers.

Explain the factors that causes poverty in Nepal.

 Consider the following schedule. 

 a. Derive linear consumption and saving functions.

 b. Graph Yd and C and explain three propositions of psychological law of consumptions function.

What are the assumptions of the principle of effective demand?

What are the properties of MPS?

Investment function and saving function of an economy are:

I = 120 + 0.2Y and S = -30 + 0.4Y respectivelya. Compute equilibrium level of income, saving and investment.b. If autonomous saving increases by Rs. 40 billion, what will be the effect on income, saving and investment?c. What will be the effect on income, saving and investment when MPS increases to 0.5?d. Compare the results of 'b' and 'c' with the result of 'a' and verify the condition of the Paradox of Thrift.

State the four sector economy. How is national output determined under it?

State the four sector economy. How is national output determined under it?

What are the long-run determinants of investment?

Consider the saving function. S = a + bY and interpret the components.

(a) Derive tax multiplier.

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

C = 200 + b(Y - T), T = 500+tYI = 100, G = 500, X = 100, M = 50+0.1YThe marginal 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 increase by Rs. 50 billion and the tax rate decreases by 5%

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

Let, C = 300 + 0.8(Y-T), T = 80, G = 400, I = 300-3000i. Derive IS equation.

What is LM curve? How is it derived?

Let, the structural equations for the money market and product market in a hypothetical economy are given as follows:

I = 400 - 4000 i;Mt = 0.5 YT = 200 + 0.2YMsp = 200 - 2000 i;C= 400 + 0.75(Y-T)M = 800G = 500i.Determine equilibrium rate of interest and output.ii. What will be the simultaneous effect on the equilibrium rate of interest and output when government increases its planned expenditure by Rs. 100 billion and central bank increases money supply by Rs. 200 billion?iii. Are these fiscal and monetary measures effective to control inflation? Give your comments.

Consider the following features of the hypothetical Economy.

C = 300 + 0.75(Y-T)I = 600 - 6000iMs = 600 billionMtp = 300 - 9000iT = 240 + 0.2YG = 300 billionMt = 0.5 Ya. Calculate the equilibrium income and rate of interest.b. It is realized that the economy is trapped in an economic depression. In order to remove recession, the government has implemented an expansionary fiscal policy and increased its expenditure by 300 billion. The central bank has also supported government and increased the money supply by 300 billion. What will be the simultaneous effect on equilibrium national income and rate of interest?c. State the characteristics of economic depression. Are these policies effective to remove depression? Give your critical comment.

Suppose that the Nepalese economy has realized the following structural equations for the product and money markets.C = 200+0.8(Y -I), T = Rs. 40 billion, Msp = 200-3000i, Mt =0.5YI = 200-2000i, G = Rs. 100 billion, M= Rs. 400 billioni) Compute the equilibrium rate of interest and output.ii) It is realized that the Nepalese economy is trapped in economic recession. Nepal Rastra Bank has implemented a contractionary monetary policy. As a result money supply increased by Rs. 300 billion. The government of Nepal has also 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?

Explain the prosperity phase of trade cycles with its characteristics.What types of monetary instruments would you suggest instabilizing the economy?

What is profit-push inflation?

List the economic values that are used to computing rate of inflation.

Explain the contraction phases of trade cycles. What types of fiscal measures would you apply to stabilize the economy?

Point out any four features of trade cycles.

Explain the concept and causes of cost-push inflation. How can it be controlled by monetary and fiscal policies?

Explain the principle of demand pull inflation. How can it be removed by monetary and fiscal polices?

Assess the features of monetary policy (2023-24) of Nepal.

List out the sources of deficit financing.

State the types of budget.

What are the sources of deficit financing?

Mention the features of budgetary policy of Nepal.

Describe the components of fiscal federalism.

What are the components of capital account of BOP?

What is regional economic integration? Explain its advantages fordeveloping countries like Nepal.

How is flexible exchange rate determined? Explain.

What are the cost drivers of globalization?

What are the determinants of demand for foreign exchange?

State the forms of globalization. How does globalization create positive and negative effects in the developing economy? Explain.

What is meant by exchange rate?

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

What is financial inclusion? Explain its determinants.

Point out the core values of economic development?

What are the components of financial inclusion?

Write any four causes of unemployment in Nepal.

Write any four determinants of financial inclusion.

What is Public-Private Partnership? Explain its components.

What are methods of privatization?

Prepare a list of advantages of foreign employment