# BECC-103 INTRODUCTORY MACROECONOMICS in English Solved Assignment 2020

Contents

## Solved Assignment 2020

Course Code: BECC-103
Assignment Code: ASST/BECC 103/ 2020
Total Marks: 100

Title Name

#### BECC-103 Economic Solved Assignment 2020

University IGNOU
Service Type Solved Assignment (Soft copy/PDF)
Course BAG(Economic)
Language ENGLISH
Semester 2020 Course: BA(Economic)
Session 2020
Short Name BECC-103 (Economic)
Assignment Code ASST/BECC 103/ 2020
Product Assignment of BAG(Economic) 2020 (IGNOU)
Submission Date This assignment is for students enrolled for January 2020. It should submitted by 31st October 2020

Assignment I
Answer the following Descriptive Category Questions in about 500 words each. Each question
carries 20 marks. Word limit does not apply in the case of numerical questions. 2 × 20 = 40
1. (a) What is Say’s Law of market? What are its implications for an economy? 10
(b) Explain why and how, according to the classical economists, the economy always
operates at full employment level. 10
2. (a) Briefly explain the implications of the IS curve. What does a point outside the IS
curve mean? What do the position and slope the IS curve imply? 10
(b) Briefly explain the implications of the LM curve. What does a point outside the LM
curve mean? What do the position and slope of the LM curve imply?
Assignment II
Answer the following Middle Category Questions in about 250 words each. Each question
carries 10 marks. Word limit does not apply in the case of numerical questions. 3 × 10 = 30
3. What are the functions of money? Explain how paper money or fiat money performs all
these functions. 10
4. Give an outline of the value added method of measurement of Gross Domestic Product.
Explain how the problem of ‘double counting’ is taken care of in this method. 10
5. Explain impact of inflation on various segments of society. 10
Assignment III
Answer the following Short Category Questions in about 100 words each. Each question carries
6 marks. 5 × 6 = 30
6. Explain the concept of money multiplier. 6
7. Define marginal propensity to consume (mpc). Why marginal propensity to consume
(mpc) remains between 0 and 1? What is the implication of a higher value of mpc? Is it
possible to explain the mpc through a diagram? 6
8. Explain why income tax is considered as an automatic stabiliser. 6
9. For a three sector economy the following is given:
𝐶 = 25 + 0.6𝑌, I = 30, G = 25
where C = consumption, I = investment, and G = government expenditure.
Find out the equilibrium output level. 6
10. In the IS-LM model, explain why the economy always moves towards the equilibrium
point.