Macroeconomics for Business

State the features of macroeconomics.

What are the long-run determinants of investment?

What are methods of privatization?

Prepare a list of advantages of foreign employment

What are the sources of deficit financing?

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

Differentiate money flow and real flow.

What is meant by exchange rate?

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

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

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

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?

Mention the features of budgetary policy of Nepal.

Describe the components of fiscal federalism.

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.

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?

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

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