Introductory Macroeconomics
BBA | BBA-BI | BBA-TT | BCIS | BHCM
Old Question Paper
Year: 2011 | Semester: Fall
Pokhara University
Exam 2011 Fall
Attempt all the questions.
1. a. Define macroeconomics and describe its limitations. [7]
b. What is meant by withdrawals and injections in an economy? Illustrate the circular flow of income and expenditure of a three sector economy. [8]
2. a. What is national income? Describe the difficulties of its accounting? [8]
b. From the following data compute: [7]
i. Real GNP
ii. GNP deflator and rate of inflation
| Year | Nominal GNP (in billions) | Wholesale PIN (2000-01=100) |
| 2005-2006 | 54195 | 228.1 |
| 2006-2007 | 61583 | 251.0 |
3. a. Explain the basic model of classical theory of output and employment. [8]
OR
Explain the determination of employment under principle of effective demand.
b. Define age and marginal propensity to consume. Illustrate the psychological law of consumption. [7]
4. a. Compute Y (National Income), C(Consumption),S(Saving) and Yd(Disposable income) with the help following information.
C= 100+0.8 Yd
I=500
G=100
T=80
b. Find change in equilibrium income if G increases to 200 and I decreases to 400 in question number 4(a). [7]
5. a. What curve? How do you derive it? [7]
b. Write about the Loanable Fund Theory of Interest. [8]
6. a. Define monetary policy and its objectives. [7]
b. What is investment multiplier? What are the possible leakages in the multiplier principle? [8]
7. Write short notes on any two: [2×5=10]
a. Marginal efficiency of capital
b. Phases of business cycle
c. Say’s Law of market
