BECC-133 · December 2025 · English
IGNOU BECC-133 December 2025 Previous Year Question Paper
PRINCIPLES OF MACRO ECONOMICS-I
Structured previous year question paper for BECC-133, December 2025 session.
Max marks: 100 · Questions: 12 · Sections: 6
Verified: 5 Aug 2026
BACHELOR OF ARTS (GENERAL) (BAG)
Term-End Examination
December, 2025
BECC-133 : PRINCIPLES OF MACRO
ECONOMICS-I
Time : 3 Hours Maximum Marks : 100
Note : Answer questions from all Sections as per
instructions.
Section-A : Answer any two questions in
about 500 words each.
Section-B : Answer any four questions
in about 250 words each.
Section-C : Write short notes on any two
in about 100 words each.
Section—A
Q1.Derive the demand for labour and the supply of labour curves. Explain how demand and supply in the labour market determine the level of employment and real wage rate (Diagrams are required).
Q2.(a) What moves the economy toward equilibrium when unintended inventory investment is
(i) positive, and
(ii) negative ? 10
(b) Explain why real GDP increases when both taxes and government purchases increase by the same amount.
Q3.(a) What is unemployment ? Why is unemployment a serious problem? 10
(b) Define business cycle. Describe its phases.
Q4.(a) For constant output, if the real money supply exceeds the real quantity of money demand, what will happen to real interest rate that clears the money market ? 12
(b) What are the functions of money ?
Section—B
Q5.Explain the product method to measuring national income. What are the precautions taken while calculating national income by product method ?
Q6.(a) Why is the classical aggregate supply curve vertical ? 6
(b) The multiplier for a two-sector economy is computed to be 4. Derive the saving function and consumption function.
Q7.If government reduces the transfer payments but increases the purchase by an equal amount, that is AG=—ATR, what will be the effect on equilibrium income, and why ? 12 Given : c=0.6,t = 0.25, yo = 60, AG =10, ATR=-10.
Q8.Define net export function. Explain how equilibrium output is determined in an open economy.
Q9.(a) What are the motives for holding money ?
(b) What are the determinants of demand for money ? Explain.
Q10.“The overall money supply in the economy is the outcome of the behaviour of banks, public and the central bank.” Prove this statement by deriving the money multiplier.
Q11.What are the instruments of monetary policy ? Explain.
Section—C
Q12.Write short notes on any two of the following : 2x6=12
(a) Reserve Money
(b) BoP
(c) Paradox of thrift
(d) Major difference between Classical and Keynesian models of output fea Ta: c=0.6,t = 0.25, yp = 60,A G= 10, ATR=-101 2x6=12