Tribhuvan University
Bachelor of Business Studies
Year 2 · TU Board 2082
Course Title: Macroeconomics for Business (MGT209)
Full Marks: 100Time: 3 Hrs
Group A
Brief Answer Questions: Attempt ALL questions.(10 × 2 = 20)
- 1.2
What is dynamic analysis in macroeconomics?
Answer comingAlso asked in 2080
- 2.2
Prepare a list of types of unemployment.
- 3.2
What are the components of money market equilibrium under classical theory of employment?
- 4.2
Derive government expenditure multiplier.
- 5.2
Write any four determinants of investment function.
- 6.2
Differentiate between money flow and real flow.
Answer comingAlso asked in 2078
- 7.2
State the scope of macroeconomics.
Answer comingAlso asked in 2080, 2078
- 8.2
Write any two implications of Say's law of market.
Answer comingAlso asked in 2080
- 9.2
Double counting may occur under final product method. Why?
- 10.2
What are the determinants of effective demand?
Answer comingAlso asked in 2080, 2079
Group B
Short Answer Questions (Any Five)(5 × 10 = 50)
- 11.10
Derive the LM curve.
- 12.10
Describe the structure of financial market of Nepal.
- 13.10
Explain the current trends of global economy.
- 14.10
What is trade cycle? Describe its characteristics.
- 15.10
Let, C = 400 + 0.7 (Y-T), T = 120 + 0.2Y, I = 500, G = 400, X = 100, M = 5 + 0.1Y. i. Determine equilibrium output and trade balance. ii. What will be the effect on equilibrium output and trade balance when government expenditure decreases by Rs. 100 billions and tax rate increases by 5%? iii. Compute government expenditure and foreign trade multipliers.
- 16.10
Suppose, saving functions, S = -200 + 0.3Y, investment function, I = 100 + 0.1Y. i. Determine equilibrium output, saving and investment. ii. What will be the effect on equilibrium output saving and investment when (a) planned saving increases by Rs. 40 billions and (b) MPS increases to 0.4? iii. Do these conditions reflect paradox of thrift? Give reasons.
Group C
Analytical Answer Questions (Any Two)(2 × 15 = 30)
- 17.15
Explain the determinants of financial inclusion. What is the current status of financial inclusion in Nepal? Discuss.
Answer comingAlso asked in 2081, 2080, 2079
- 18.15
What is fiscal policy? Explain its types and objectives.
- 19.15
Consider the following data: DescriptionRs. in billionsDividends459Business interest payments946Addition to stocks-3Personal taxes413Personal consumption expenditure11943Govt. and business transfers2000Net indirect taxes739Net fixed capital formation1671Depreciation708Current transfers from rest of the world1182Corporate profits2059Exports1048Rental income682Government consumption757Wages and salaries8000Imports1540Interest264Employer's contribution to social security1186Social insurance payments1000 a. Compute GDP MP by both expenditure and income methods. b. Compute personal income. c. Differentiate nominal GDP and real GDP.
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