BECC-103 EM 2025-26 SOLVED ASSIGNMENT

Description

BECC-103 : INTRODUCTORY MACROECONOMICS
Course Code: BECC-103
Assignment Code: ASST/BECC 103/ 2025-26

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. 20 × 2 = 40

1) (a) What is Say’s Law of market? What are its implications for an economy?

(b) Explain why and how, according to the classical economists, the economy always operates at full employment level.

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?

(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. 10 × 3 = 30

3) In a three-sector economy, explain how the circular flows of income and output take place. Use appropriate diagram substantiate your answer.

4) What according to Keynes are the components of aggregate demand? Describe how equilibrium output is determined in the simple Keynesian model.

5) Give a brief account of the various instruments of monetary policy.

Assignment III Answer the following Short Category Questions in about 100 words each. Each question carries 6 marks. 6×5 = 30

6) Explain how various sections of society are affected by inflation.

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?

8) Explain why income tax is considered as an automatic stabiliser.

9) For a three-sector economy the following are given:

C =25+0.6𝑌, I = 30, G = 25 where C = consumption, I = investment, and G = government expenditure. Find out the equilibrium output level.

10) What type of fiscal policy should the government adopt during high inflation? Justify your answer.