BECC-134 PRINCIPLES OF MACROECONOMICS – II in English Solved Assignment 2023-2024

BECC-134 PRINCIPLES OF MACROECONOMICS – II Solved Assignment 2023-2024

Tutor Marked Assignments
Course Code: BECC-134
Assignment Code: Asst /TMA /2023-24
Total Marks: 100

ASSIGNMENT ONE
Answer the following Descriptive Category questions in about 500 words each. Each
question carries 20 marks. Word limit does not apply in case of numerical questions.
2 × 20 = 40
1. (a.) Explain the causes and effects of inflation.
(b) Give a brief account of cost of disinflation in the economy.
2. (a.) Interpret the slope of an LM curve. What will happen when there is a decrease in
money supply? Explain with the help of a diagram.
(b.) Derive the aggregate demand curve with the help of IS-LM analysis.
ASSIGNMENT TWO
Answer the following Middle Category questions in about 250 words each. Each question
carries 10 marks. Word limit does not apply in case of numerical questions.
3 X 10=30
3. What are the different kinds of exchange rate regimes? State the difference among them.
4. Derive the IS curve with the help of the Keynesian cross. Which factors affect the
position of an IS curve.
5. How do you reconcile the vertical long run Phillips curve with the downward sloping
short run Phillips curve? Explain with the help of a diagram.
ASSIGNMENT THREE
Answer the following Short Category questions in about 100 words each. Each question
carries 6 marks.
5X 6=30
6. Differentiate between:
i) Adaptive expectations and rational expectations
ii) Absolute and relative purchase power parity
7. Do you agree with the statement ‘Balance of Payments always balances” Comment.
8. Explain asset market approach to Exchange rate determination.
9. Explain Non-Accelerating Inflation rate of Unemployment?
10. Why does aggregate demand curve slope downward?

BECC-134, BECC 134, BECC134