You are currently viewing IGNOU BECC 134 Solved Assignment 2022-23

IGNOU BECC 134 Solved Assignment 2022-23

IGNOU BECC 134 Solved Assignment 2022-23 , BECC 134 PRINCIPLES OF MACROECONOMICS II Solved Assignment 2022-23 Download Free : BECC 134 Solved Assignment 2022-2023 , IGNOU BECC 134 Assignment 2022-23, BECC 134 Assignment 2022-23 , BECC 134 Assignment , BECC 134 PRINCIPLES OF MACROECONOMICS II Solved Assignment 2022-23 Download Free IGNOU Assignments 2022-23- BACHELOR OF ARTS Assignment 2022-23 Gandhi National Open University had recently uploaded the assignments of the present session for BACHELOR OF ARTS Programme for the year 2022-23. Students are recommended to download their Assignments from this webpage itself. Study of Political Science is very important for every person because it is interrelated with the society and the molar values in today culture and society. IGNOU solved assignment 2022-23 ignou dece solved assignment 2022-23, ignou ma sociology assignment 2022-23 meg 10 solved assignment 2022-23 ts 6 solved assignment 2022-23 , meg solved assignment 2022-23 .

IGNOU BECC 133 Solved Assignment 2022-23

We provide handwritten PDF and Hardcopy to our IGNOU and other university students. There are several types of handwritten assignment we provide all Over India. BECC 134 PRINCIPLES OF MACROECONOMICS II Solved Assignment 2022-23 Download Free We are genuinely work in this field for so many time. You can get your assignment done – 8130208920

Important Note – IGNOU BECC 134 Solved Assignment 2022-2023  Download Free You may be aware that you need to submit your assignments before you can appear for the Term End Exams. Please remember to keep a copy of your completed assignment, just in case the one you submitted is lost in transit.

Download Question Paper 

Submission Date :

  • 31st March 2033 (if enrolled in the July 2033 Session)
  • 30th Sept, 2033 (if enrolled in the January 2033 session).

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 in Assignment One.

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 in Assignment Two.

Answer the following Short Category questions in about 100 words each. Each question carries 6 marks in Assignment Three.

Answer all the questions.

Assignment One


1. (a.) Explain how IS-LM curves are derived.

DERIVATION OF LM CURVE

The LM curve can be derived from the Keynesian theory from its analysis of money market equilibrium. According to Keynes, demand for money to hold depends upon transactions motive and speculative motive. It is the money held for transactions motive which is a function of income. The greater the level of income, the greater the amount of money held for transactions motive and therefore higher the level of money demand curve.

The demand for money depends on the level of income because they have to finance their expenditure, that is, their transactions of buying goods and services. The demand for money also depends on the rate of interest which is the cost of holding money. This is because by holding money rather than lending it and buying other financial assets, one has to forgo interest. Thus demand for money (Md) can be expressed as: Md= L(Y, r)where Md stands for demand for money, Y for real income and r for rate of interest.

Thus, we can draw a family of money demand curves at various levels of income. Now, the intersection of these various money demand curves corresponding to different income levels with the supply curve of money fixed by the monetary authority would gives us the LM curve. The LM curve relates the level of income with the rate of interest which is determined by money-market equilibrium corresponding to different levels of demand for money.

The LM curve tells what the various rates of interest will be (given the quantity of money and the family of demand curves for money) at different levels of income. In Figure below we measure income on the X-axis and plot the income level corresponding to the various interest rates determined at those income levels through money market equilibrium by the equality of demand for and the supply of money.

ignou becc 132 solved assignment 2022-23

Slope of LM Curve:

It will be noticed from Fig that the LM curve slopes upward to the right. This is because with higher levels of income, demand curve for money (Md) is higher and consequently the money-market equilibrium, that is, the equality of the given money supply with money demand curve occurs at a higher rate of interest. This implies that rate of interest varies directly with income. It is important to know the factors on which the slope of the LM curve depends. There are two factors on which the slope of the LM curve depends.

First, the responsiveness of demand for money (i.e., liquidity preference) to the changes in income. As the income increases, say from Y0 to Y1, the demand curve for money shifts from Md0 to Md1, that is, with an increase in income, demand for money would increase for being held for transactions motive, Md or L1=f(Y).This extra demand for money would disturb the money market equilibrium and for the equilibrium to be restored the rate of interest will rise to the level where the given money supply curve intersects the new demand curve corresponding to the higher income level. It is worth noting that in the new equilibrium position, with the given stock of money supply, money held under the transactions motive will increase whereas the money held for speculative motive will decline. The greater the extent to which demand for money for transactions motive increases with the increase in income, the greater the decline in the supply of money available for speculative motive and, given the demand for money for speculative motive, the higher the rise in the rate of interest and consequently the steeper the LM curve, r = f (M2, L2) where r is the rate of interest, M2is the stock of money available for speculative motive and L2 is the money demand or liquidity preference function for speculative motive.

The second factor which determines the slope of the LM curve is the elasticity or responsiveness of demand for money (i.e., liquidity preference for speculative motive) to the changes in rate of interest. The lower the elasticity of liquidity preference for speculative motive with respect to the changes in the rate of interest, the steeper will be the LM curve. On the other hand, if the elasticity of liquidity preference (money demand function) to the changes in the rate of interest is high, the LM curve will be flatter or less steep.

(b) Explain how adjustments take place in IS-LM model to restore equilibrium

The Equilibration Process:

In struggling with the problem of teaching the student why the intersection of the IS and LM curves yields the general equilibrium solution to the interest rate and output variables, I wondered why students are able to understand quickly how a market equilibrates. The typical student knows that D=S generates the Pe, Qe combination that we seek. He also knows, however, the process by which such a solution is reached. From the first course in economics he is taught that any price above the equilibrium price generates a surplus which forces suppliers to cut prices in order to sell their inventories. On the other hand, a P below Pe results in a shortage and upward pressure on the price as consumers bid up the price. When asked why the intersection of S and D yields Pe, the typical student responds with this story. The student hasn’t memorized that S=D generates Pe, he has learned that there is an “equilibration process” at work.

As in microeconomics, equilibrium is defined as no tendency to change. In general, an endogenous variable (that is, a variable whose value is determined by forces within the system) can have an infinite possible range of values. In economics, most endogenous variables, such as output in a macro model, are usually constrained to be positive; but they can still take on any value from zero to positive infinity. The equilibrium value is one particular value—the one value where the variable has no tendency to change. Any other value is not a state of rest for there are forces within the model that will generate movement to a new value.The microeconomist’s story of how equilibrium is attained provides the key to teaching the concept of equilibrium price in a single market. Note how the presentation proceeds: (1) define equilibrium as no tendency to change, (2) pick a value and see if it has a tendency to change, and, (3) if it does, describe the forces that lead to change and point out the direction of the change. This explanation is understood by the vast majority of students. Simply put, as a means to communicate an idea, it really works! When asked why S=D generates the Pe, the typical response is built around the notion that forces are at work that will drive the price to a certain value. No attempt is made at repeating a memorized condition—as is usually the case when the question concerns equilibrium output in a macro model. The next step is obvious: if it works for explaining the equilibration process in a single market, let’s apply it to explain why IS=LM yields Ye. By following the three steps outlined above, we hope to get the same spectacular results in terms of understanding the IS/LM graph that we get in microeconomics.

Step (1): Defining equilibrium
As in microeconomics, equilibrium is defined as no tendency to change. In general, an endogenous variable (that is, a variable whose value is determined by forces within the system) can have an infinite possible range of values. In economics, most endogenous variables, such as output in a macro model, are usually constrained to be positive; but they can still take on any value from zero to positive infinity. The equilibrium value is one particular value—the one value where the variable has no tendency to change. Any other value is not a state of rest for there are forces within the model that will generate movement to a new value.

Step (2): Pick a value and see if it has a tendency to change Figure 1 shows an initial value of i0 and Y0 that’s on the IS curve, but not on the LM curve:
ignou becc 132 solved assignment 2022-23

The student no doubt knows that the i, Y combination depicted in Figure 1 is not the equilibrium combination, but the crucial question is “Why?” To apply the “equilibration process” explanation to this question, we must show how and why the i0, Y0 pair has a tendency to change. In order to do this, we will bring to the front the set of graphs that underlies the IS/LM graph:

Look closely at the relationship between the IS/LM graph and the three graphs that compose the IS/LM graph. Being on the IS curve means that we are in equilibrium in the goods market; hence, I was careful to place Y0 on the intersection of the AD and 450 line. However, being off the LM curve means that the money market is not in equilibrium; therefore, the existing interest rate is clearly above the equilibrium interest rate.

Step (3): A Description of the Forces that Lead to Changes in i and Y and the Direction of those Changes:

From Figure 2 and Step 2 we know that both the i and Y variables are out of equilibrium and, therefore, that they will have a tendency to change. What we must determine is how and why that change will take place. Unfortunately, here it gets messy. Unlike microeconomics, where one basic equilibration process is taught (P < Pe –> higher P; P > Pe –> lower P), the IS/LM Model has several possible equilibration processes. Different equilibration processes arise when different assumptions regarding the speed and order in which the variables reach equilibrium are made. In this work, we will show the student three of the many possibilities.


2. (a.) How is classical range of the LM curve different from Keynesian range? Explain
with the help of a diagram.

(b.) Explain Unemployment-inflation trade off with the help of diagram.


 

Assignment Two


3. What is inflation? Discuss various types of inflation.

4. Explain short run and long run equilibrium of an economy with the help of diagram.

5. Explain the impact of the expansionary fiscal and monetary policy on equilibrium prices and output.


IGNOU Handwritten Hardcopy , WhatsApp – 8130208920

IGNOU BECC 134 Solved Assignment 2022-2023 We provide handwritten PDF and Hardcopy to our IGNOU and other university students. There are several types of handwritten assignment we provide all Over India. BECC 134 PRINCIPLES OF MACROECONOMICS II Solved Assignment 2022-23 Download Free We are genuinely work in this field for so many time. You can get your assignment done – 8130208920


GET IGNOU Handwritten Hardcopy , WhatsApp – 8130208920

Assignment Three


6. Differentiate between:
i) Demand pull and cost push inflation
ii) Nominal and real exchange rate

7. Explain absolute and relative purchase power parity.

8. Explain different types of unemployment in the economy.

9. What are adaptive and rational expectations?

10. Explain the factors that will result in the rightward shift in the Aggregate supply curve with the help of diagram.


Get IGNOU BECC 134 Solved Assignment 2022-23 Download Free Now  here from this website.

IGNOU BECC 134 Solved Assignment 2022-2023 get here all ignou solved assignment 2022-23 , ignou guess paper , ignou help books and ignou exam related material. We help students to get their assignment done with our handwritten services, BECC 134 PRINCIPLES OF MACROECONOMICS II Solved Assignment 2022-23 Download Free you can access our all material and services through WhatsApp also , 8130208920


GET SOLVED PDF – Click Here


IGNOU Instructions for the BECC 134 PRINCIPLES OF MACROECONOMICS II Solved Assignment 2022-23

IGNOU BECC 134 Solved Assignment 2022-2023 Download Free  Before attempting the assignment, please read the following instructions carefully.

  1. Read the detailed instructions about the assignment given in the Handbook and Programme Guide.
  2. Write your enrolment number, name, full address and date on the top right corner of the first page of your response sheet(s).
  3. Write the course title, assignment number and the name of the study centre you are attached to in the centre of the first page of your response sheet(s).
  4. Use only foolscap size paperfor your response and tag all the pages carefully
  5. Write the relevant question number with each answer.
  6. You should write in your own handwriting.



GUIDELINES FOR IGNOU Assignments 2022-23

IGNOU BECC 134 Solved Assignment 2022-23 You will find it useful to keep the following points in mind:

  1. Planning: Read the questions carefully. IGNOU BECC 134 Assignment 2022-23 Download Free Download PDF Go through the units on which they are based. Make some points regarding each question and then rearrange these in a logical order. And please write the answers in your own words. Do not reproduce passages from the units.
  2. Organisation: Be a little more selective and analytic before drawing up a rough outline of your answer. In an essay-type question, give adequate attention to your introduction and conclusion. IGNOU BECC 134 Solved Assignment 2022-2023 Download Free Download PDF The introduction must offer your brief interpretation of the question and how you propose to develop it. The conclusion must summarise your response to the question. In the course of your answer, you may like to make references to other texts or critics as this will add some depth to your analysis.
  3. Presentation: IGNOU BECC 134 Solved Assignment 2022-2023 Download Free Download PDF Once you are satisfied with your answers, you can write down the final version for submission, writing each answer neatly and underlining the points you wish to emphasize.

IGNOU Assignment Front Page

The top of the first page of your response sheet should look like this: Get IGNOU Assignment Front page through. And Attach on front page of your assignment. Students need to compulsory attach the front page in at the beginning of their handwritten assignment.

ENROLMENT NO: …………………………………………………….

NAME: ……………………………………………………………………

ADDRESS: ………………………………………………………………

COURSE TITLE: ………………………………………………………

ASSIGNMENT NO: …………………………………………………

STUDY CENTRE: …………………………………………….……..

DATE: ……………………………………………………………………



BECC 134 Handwritten Assignment 2022-23

IGNOU BECC 134 Solved Assignment 2022-23 – We provide handwritten PDF and Hardcopy to our IGNOU and other university students. BECC 134 PRINCIPLES OF MACROECONOMICS II Solved Assignment 2022-23 Download Free Download PDF There are several types of handwritten assignment we provide all Over India. BECC 134 PRINCIPLES OF MACROECONOMICS II Solved Assignment 2022-23 Download Free Download PDF We are genuinely work in this field for so many time. You can get your assignment done –8130208920

Related Material Also –

BUY PDF & Handwritten

  • Solved PDF Cost – @50 rs per Paper / Subject
  • Handwritten Hardcopy – @350 rs per paper/ subject

WhatsApp – 813020892

Leave a Reply