BECC-133 PRINCIPLES OF MACROECONOMICS – I
Solved Assignment 2021-2022
Course Code: BECC-133
Assignment Code: ASST/BECC 103/ 2021-22
Total Marks: 100
BECC-133 Economics Hons (BAECH) Solved Assignment 2021-2022
|Service Type||Solved Assignment (Soft copy/PDF)|
|Course||BAG(Economics Hons (BAECH))|
|Semester||2021-2022 Course: BA(Economics Hons (BAECH))|
|Session||July 2021- January 2022 sessions|
|Short Name||BECC-133 (Economics Hons (BAECH))|
|Assignment Code||ASST/BECC 103/ 2021-22|
|Product||Assignment of BAG(Economics Hons (BAECH)) 2021-2022 (IGNOU)|
|Submission Date||For students of July cycle: 30 April
For students of January cycle: 31 October
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) Explain how the circular flows of income and output in a three sector economy take place. Draw
appropriate diagram to substantiate your answer. Point out the leakages from the circular flows.
2) (a) Describe the functions of money.
(b) What according to Keynes are the factors that lead to demand for money?
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) Why did the classical economists fail to explain the Great Depression? What is the
Keynesian explanation for the same?
4) Give a brief account of the various instruments of monetary policy.
5) What according to Keynes are the components of aggregate demand? Describe how equilibrium
output is determined in the simple Keynesian model.
Answer the following Short Category Questions in about 100 words each. Each question
carries 6 marks. 5 × 6 = 30
6) Explain the concept of liquidity trap.
7) With an example, explain the concept of double counting.
8) For a three sector economy the following are given:
𝐶 = 30 + 0.75𝑌, I = 30, G = 40
where C = consumption, I = investment, and G = government expenditure.
Find out the equilibrium output level. Find out the value of investment multiplier.
9) What is meant by net exports? What are the determinants of net exports?
10) What type of fiscal policy should the government adopt during recession? Justify your answer.
BECC-133, BECC 133, BECC133