Most Important Questions of Macroeconomics

Introduction

• Discussion on the most important questions
• Advice to check old preparations
• Useful for those whose preparation is incomplete
• Advice to cover all important topics in four to five hours

Unit Wise Important Questions

National Income

• Four chapters: 18 questions (around four questions per chapter)
• Important topics:
  • Difference between stock flow
  • Circular flow diagram
  • Factor income vs transfer income
  • Current and capital transfers
  • Difference between final and intermediate goods
  • Difference between capital and consumption goods
  • Three components of NFIA
  • Domestic income vs national income
  • Precautions of the value-added method
  • Difference between real and nominal GDP
  • Understanding of GDP deflator
  • Focus on numericals
  • Special non-monetary exchange and externality
• Total questions: 16 (around four questions per chapter)

Money and Banking

• Four questions:
  • Money supply and its measures
  • High powered money
  • Functions of the central bank (credit control and lender of last resort)
  • Money multiplier and its numericals

AD-AS

• Important topics:
  • AD and AS curves
  • Consumption function
  • Curves and formulas of APC, MPC
  • Saving function
  • Curves of excess demand and deficit demand
  • Short questions: APC, APS, MPC, MPS
  • Practice and explanation of the investment multiplier table
  • Paradox of thrift
  • Difference between inflationary and deflationary gap
  • Methods to control excess demand

Government Budget

• Important topics:
  • Difference between direct and indirect tax
  • Revenue and capital expenditure
  • Revenue and fiscal deficit
  • Objectives and implications of the budget

Foreign Exchange and BOP

• Important topics:
  • Types of foreign exchange rates
  • Devaluation vs depreciation
  • Devaluation, revaluation, and appreciation
  • Difference between BOP and BOT
  • Current account surplus vs current account deficit
  • Components of the current and capital account
  • Accommodating and autonomous transactions

Conclusion

• Advice to prepare everything in four to five hours
• Those who know everything can attempt sample papers
• Prepare the topics missed earlier
• Sample paper attached in the video description
• Prepare for numericals and MCQs in the evening

Conclusion

• Advice to take a screenshot
• Hope to meet soon

Thank you!