BECC-134 · December 2023 · English
IGNOU BECC-134 December 2023 Previous Year Question Paper
PRINCIPLES OF MACRO ECONOMICS—II
Structured previous year question paper for BECC-134, December 2023 session.
Max marks: 100 · Questions: 12 · Sections: 3
Verified: 5 Aug 2026
BACHELOR OF ARTS (GENERAL)
(BAG)
(ECONOMICS)
Term-End Examination
December, 2023
BECC–134 : PRINCIPLES OF
MACROECONOMICS–II
Time : 3 Hours Maximum Marks : 100
Note : Answer questions from all the Sections as
per instructions.
Section—A
Note : Answer any two questions from this Section
in about 500 words each. 2 × 20 = 40
Q1.Explain how the LM curve is derived. Discuss the factors that determine the slope and position of the LM curve. [ 2 ]
Q2.What is meant by inflation ? Discuss the types of inflation.
Q3.What is natural rate of unemployment ?
Q4.Describe the various types of unemployment.
Q5.Why does an Aggregate Demand (AD) curve slope downwards ? Give reasons for a shift in the AD curve to the right.
Section—B
Note : Attempt any four questions from this Section
in about 250 words each. 4 × 12 = 48
Q6.How is the classical range of the LM curve different from the Keynesian range ?
Q7.Distinguish between adaptive expectations and rational expectations.
Q8.Explain the effect of expansionary fiscal policy on equilibrium output and price s with the help of a diagram.
Q9.Elucidate the asset market approach to exchange rate determination. [ 3 ]
Q10.In the IS -LM model, explain how adjustments in the economy take place, to maintain the equilibrium.
Q11.Explain the Phillips curve with the help of a diagram. Why is it vertical in the long-run ?
Section—C
Q12.Write short notes on any two of the following :
(a) Cold Turkey or Gradualism
(b) Core inflation
(c) Absolute and relative Purchasing Power Parity (PPP)
(d) Fixed and floating exchange rate system [ 4 ] BECC–134 2023 –134 2 × 20 = 40 [ 5 ] BECC–134 4 × 12 = 48 IS-LM [ 6 ]