0311-226 - Macroeconomics - MID Question

1. a. Briefly explain the major objectives of macroeconomics. 3 (CLO 1, Level 2) b. Illustrate the Business Cycle with its all phases. 4 (CLO 1, Level 2) 2. a. Examine the advantages and disadvantages of different types of Fiscal Policies? 4 (CLO 2, Level 4) b. Which policy do you like to suggest for the Government of Bangladesh to apply? Make inference about your suggestions. 4 (CLO 2, Level 4) Or a. Explain the importance of national income accounting in economy? 4 (CLO 2, Level 2) b. Distinguish between nominal GDP and real GDP? Explain with appropriate example. 4 (CLO 2, Level 4) 3. a. What does Gross Domestic Product (GDP) mean? Briefly explain the approaches to determine GDP of a national economy. 5 (CLO 3, Level 1) b. According to Keynesian view, what are the approaches to determine equilibrium level of national income? Consider that a two-sector economy has Autonomous Consumption 120, MPC 0.75, and Investment 760. Based on the given information, estimate the value of equilibrium level of national income and graphically show it. 5 (CLO 3, Level 5)