BECC 134 Solved Guess Paper 2026 is our answer booklet for IGNOU's Principles of Macroeconomics-II, and it does one job well. It puts the 14 questions most likely to show up in your December 2026 term-end exam in front of you, each with an answer you can actually learn in one sitting.
We didn't pick these questions on a hunch. Our faculty sat with papers from the last five years, marked every topic that came back, and checked the December 2025 and June 2026 papers last before locking the list. The answers stick to the IGNOU textbook but read like a good teacher explaining it, not like a photocopied block.
For context, BECC 134 Principles of Macroeconomics-II is the second of IGNOU's two macroeconomics courses for BAG Economics students, taken after BECC-133. It has 4 blocks and 11 units covering IS-LM analysis, aggregate demand and supply, inflation and unemployment, and the balance of payments with exchange rates.
BECC 134 Key Facts at a Glance
- Course: BECC-134 Principles of Macroeconomics-II
- Programme: Bachelor of Arts (General), BAG, Economics discipline
- Syllabus: 4 blocks, 11 units
- Term-end exam: 100 marks, 3 hours, Sections A, B and C
- Guess paper: 14 solved questions; 5 shown on this page, 9 more in the full file
- Papers analysed: Last five years, including December 2025 and June 2026
- Written for: December 2026 term-end examination
- Order: WhatsApp 9899436384
What You Get in the BECC 134 Solved Guess Paper 2026
You get 14 solved questions covering all 4 blocks and all 3 exam sections, plus three rule pages and a six-session topic frequency table.
Six questions are long 20-mark answers for Section A, seven are 12-mark answers for Section B, and question 14 bundles four short notes for Section C. That split mirrors the real paper, so you practise the same mix of long and short writing you will face in the hall.
Every answer follows one pattern: a textbook definition in a box, a few clear sub-headings, numbered points, and a one-line conclusion you can reuse. The Section A answers run to about 450 words. IGNOU asks for roughly 500, so you have room to add a diagram and still finish on time.
Before the answers, a short "read this first" section explains the paper pattern, lists topics you only need to skim, and spells out what examiners reward. It saves a lot of guesswork, especially if macroeconomics is not your strongest subject.
If you are writing other Economics papers this term, our IGNOU Solved Guess Paper range follows the same layout, so switching between courses doesn't mean getting used to a new format every time.
Five Sample Answers from the BECC 134 Solved Guess Paper
Here are 5 of the 14 questions, answered word for word as they appear in the full file: three from Section A and two from Section B.
We chose samples from every block so you can judge the quality across the whole course, not just one easy chapter. Read one answer out loud. If it makes sense on the first go, the rest of the paper will too.
LM Curve: Derivation, Slope and Position
Question: Derive the LM curve. What does a point outside the LM curve mean? Discuss the factors that determine the slope and position of the LM curve.
Meaning of the LM Curve
The LM curve shows the combination of income and the interest rate at which the demand for real balances is equal to the supply of real balances; 'L' represents liquidity and 'M' represents money supply.
All points on the LM curve indicate money-market equilibrium, while all points outside it indicate disequilibrium. The curve is positively (upward) sloping.
Derivation of the LM Curve
Money demand depends on income and interest: L = kY − hi (k, h > 0), where k is the sensitivity of money demand to income and h its sensitivity to the interest rate. At higher income an individual demands more money; at a higher interest rate she holds more bonds and less money.
Equating real money demand to a fixed real money supply (M/P) and tracing the (Y, i) combinations yields the upward-sloping LM curve.
A Point Outside the LM Curve
A point to the left and above the LM curve shows excess supply of money, which pushes the interest rate down. A point to the right and below shows excess demand for money, which pushes the interest rate up. Either way the money market adjusts back to a point on the curve.
Slope of the LM Curve
- Ratio k/h: the slope Δi/ΔY = k/h, so the slope depends on the two sensitivities of money demand.
- Steeper curve: the greater the responsiveness to income (k) and the lower the responsiveness to interest (h), the steeper the LM curve.
- Extreme cases: if money demand is nearly insensitive to interest (h ≈ 0) the LM curve is almost vertical; if very sensitive (h large) it is nearly horizontal.
Position of the LM Curve
Along the LM curve the real money supply (M/P) is held constant; any change in M/P shifts the curve. An increase in real money supply shifts LM to the right and a decrease shifts it to the left.
Real money supply can rise in three ways: (i) nominal money supply rises with the price level unchanged, (ii) the price level falls with nominal money supply constant, or (iii) M and P change so that the ratio M/P rises.
Conclusion: The LM curve captures money-market equilibrium; its slope is governed by k and h, while its position depends on the real money supply M/P.
Aggregate Demand Curve: Derivation and Downward Slope
Question: Explain how the Aggregate Demand (AD) curve is derived from the IS-LM model. Why does the AD curve slope downwards?
Meaning of the Aggregate Demand Curve
The aggregate demand curve is downward sloping, showing that if the overall price level increases the total output demanded falls; all points on it indicate equilibrium in both the goods and the money markets.
Derivation from the IS-LM Model
For a given nominal money supply M, a higher price level P lowers the real money supply M/P. This shifts the LM curve to the left, raises the interest rate and lowers equilibrium output.
Conversely, a lower price level raises M/P, shifts LM to the right, lowers the interest rate and raises output. Plotting each price and output equilibrium (P, Y) from the IS-LM diagram traces the downward-sloping aggregate demand curve.
Why the AD Curve Slopes Downward
Higher prices mean a lower real money supply and hence a lower level of aggregate demand. Since GDP is the sum of consumption, investment, government expenditure and net exports, three effects explain the negative slope:
- Wealth effect (consumption): a fall in the price level raises the real value of money, makes people wealthier and encourages spending; a rise reduces real money value, wealth and consumption.
- Interest rate effect (investment): a lower price level reduces the interest rate, encouraging investment spending; a higher price level raises the interest rate and reduces investment.
- Exchange rate effect (net exports): a fall in the domestic price level makes domestic goods cheaper and stimulates net exports; a rise makes foreign goods relatively cheaper and reduces net exports.
Thus the factors responsible for the slope of the IS and LM curves are also responsible for the slope of the AD curve.
Conclusion: Because higher prices shrink real money balances, raise the interest rate and cut consumption, investment and net exports, the aggregate demand curve derived from the IS-LM model slopes downward.
Inflation: Meaning, Types and Causes
Question: What is meant by inflation? Discuss the various types of inflation and distinguish between demand-pull and cost-push inflation.
Meaning of Inflation
Inflation is defined as a persistent rise, or a tendency towards a persistent rise, in the general level of prices.
'Persistence' and 'general price level' are both essential: a one-off rise, or a rise in a single commodity, is not inflation. As Milton Friedman put it, inflation is always and everywhere a monetary phenomenon.
Types of Inflation (by severity)
- Moderate inflation: the price level rises slowly but steadily; in India the Monetary Policy Committee targets 4% per annum within a band of 2% to 6%.
- Galloping inflation: a steady, fairly high rise running into two digits (20% to 40%) or even three digits (about 200%).
- Hyper-inflation: a very high rate where the value of money erodes rapidly, as in Zimbabwe during 2008 to 2009.
Related concepts include stagflation (stagnation plus inflation), deflation (a persistent decline in prices) and core inflation (inflation measured after removing transitory price volatility).
Causes: Demand-Pull vs Cost-Push
| Basis | Demand-Pull (demand side) | Cost-Push (supply side) |
|---|---|---|
| Origin | Aggregate demand exceeds aggregate supply at full employment | Rise in costs such as wages or raw-material prices |
| Drivers | Rise in consumption, investment or government expenditure | Wage-push by unionised labour; costly inputs such as crude oil |
| View | Keynesian demand-side explanation | Keynesian supply-side or wage-push explanation |
The Monetarists additionally use the quantity theory of money (MV = PY), while Myrdal and Streeten advanced the structural theory for developing economies.
Conclusion: Inflation is a sustained, economy-wide rise in prices, ranging from moderate to hyper-inflation, and is caused either by excess demand (demand-pull) or by rising costs (cost-push).
Balance of Payments and Its Components
Question: What is meant by Balance of Payments? Explain its various components.
Meaning
Balance of payments (BoP) is the record of the transactions of the residents of the country with the rest of the world.
Any transaction that gives rise to a payment by residents is a debit item, while receipts are credit items.
Components of the Balance of Payments
- Balance of trade: exports minus imports of goods (visible trade); a surplus arises when exports exceed imports.
- Balance of services: receipts and payments for services such as shipping, banking, insurance, tourism, interest and dividends.
- Balance of unrequited transfers: gifts, indemnities and assistance received or paid without a return payment.
- Balance of current account: the sum of the balance of trade, services and unrequited transfers; it captures the flow aspect and may be in surplus or deficit.
- Balance of capital account: purchases and sales of assets (stocks, bonds, land), borrowing and lending, and changes in gold or foreign-currency reserves.
In a bookkeeping sense, Current Account + Capital Account = 0, so the BoP always balances; a persistent current-account deficit settled by depleting official reserves signals a BoP deficit.
Conclusion: BoP records all of a country's external transactions, split into the current and capital accounts, and always balances in the accounting sense.
Adaptive vs Rational Expectations
Question: Distinguish between adaptive expectations and rational expectations.
Meaning
Economic agents form expectations about future economic variables; two leading hypotheses are adaptive expectations and rational expectations.
Adaptive Expectations
- Backward-looking: agents update expectations by a fraction λ of the previous forecast error, Pet = Pet−1 + λ(Pt−1 − Pet−1), with 0 < λ < 1.
- Strength: simple to operate and brings expectations into macroeconomics, making it more realistic.
- Limitations: people do not learn from past mistakes (errors are systematic) and rely only on past information, ignoring present and future events such as an announced expansionary policy.
Rational Expectations
- Forward-looking: agents use the best available information, past, present and future, and learn from past mistakes.
- Random errors: expected inflation equals actual inflation plus a random error of zero mean; positive and negative errors cancel out and show no pattern.
- Two versions: a weak version (limited information used optimally) and a strong version (all information used, so expectations equal actual values).
Conclusion: Adaptive expectations look only backward and make systematic errors, whereas rational expectations are forward-looking with random, self-cancelling errors.
Those were 5 answers. The other 9 questions, including the IS curve, Phillips curve, exchange rate approaches and all four short notes, are in the full file.
Unlock All 14 Answers on WhatsApp 9899436384Full Question Index of the BECC 134 Guess Paper
The full paper has 14 questions: six for Section A, seven for Section B and one short-notes set for Section C.
The last column shows the sessions each topic last came up in, as tracked in our analysis. Rows marked as samples are the ones you can read in full above.
| Q | Question topic | Block | Section | Marks | Recent appearances |
|---|---|---|---|---|---|
| 1 | LM curve: derivation, slope and position (sample above) | Block 1 | A | 20 | Dec 2025, Dec 2024, Dec 2023 |
| 2 | AD curve: derivation from IS-LM and downward slope (sample above) | Block 2 | A | 20 | Dec 2025, Jun 2025, Jun 2024 |
| 3 | Inflation: meaning, types, demand-pull vs cost-push (sample above) | Block 3 | A | 20 | Dec 2025, Dec 2024, Jun 2024 |
| 4 | IS curve: Keynesian cross derivation and slope factors | Block 1 | A | 20 | Jun 2025, Jun 2024 |
| 5 | Phillips curve: short run vs long run | Block 3 | A | 20 | Jun 2025, Jun 2024 |
| 6 | Asset market and monetary approaches to exchange rate | Block 4 | A | 20 | Dec 2025, Jun 2025, Dec 2024 |
| 7 | Factors that shift the medium-run AS curve | Block 2 | B | 12 | Dec 2025, Jun 2025, Dec 2024 |
| 8 | Balance of payments and its components (sample above) | Block 4 | B | 12 | Dec 2025, Dec 2024, Jun 2023 |
| 9 | Types of unemployment and the natural rate | Block 3 | B | 12 | Dec 2024, Jun 2024, Jun 2023 |
| 10 | Exchange rate regimes; nominal vs real exchange rate | Block 4 | B | 6 + 6 | Dec 2025, Jun 2025, Jun 2024 |
| 11 | Adaptive vs rational expectations (sample above) | Block 3 | B | 12 | Dec 2025, Jun 2024, Dec 2023 |
| 12 | Impact of inflation on sections of society | Block 3 | B | 12 | Dec 2025, Jun 2025, Jun 2023 |
| 13 | Expansionary fiscal policy, equilibrium price and output | Block 2 | B | 12 | Dec 2025, Jun 2025, Dec 2023 |
| 14 | Short notes: stagflation, output gap, sacrifice ratio, PPP | Blocks 2 to 4 | C | 2 × 6 | Dec 2025, Jun 2025, Dec 2024 |
Notice how Block 3 carries five questions on its own. Inflation, the Phillips curve and unemployment are where BECC 134 Important Questions cluster, so that block deserves the most time in your plan.
BECC 134 Principles of Macroeconomics-II Syllabus: Blocks and Units
BECC 134 has 4 blocks and 11 units, and every guess paper question maps to at least one of them.
| Block | Unit | Key topics to know | Guess paper Q |
|---|---|---|---|
| Block 1: IS-LM Analysis | Unit 1: Equilibrium in the Real Sector | Keynesian cross, IS curve slope from b and the multiplier, shifts from autonomous spending | Q4 |
| Block 1: IS-LM Analysis | Unit 2: Equilibrium in the Monetary Sector | Money demand L = kY − hi, LM slope k/h, shifts from real money supply M/P | Q1 |
| Block 1: IS-LM Analysis | Unit 3: Neoclassical Synthesis | Simultaneous IS-LM equilibrium, adjustment to equilibrium, classical vs Keynesian range of LM | Covered in frequency table |
| Block 2: GDP and Price Level in Short-Run and Long-Run | Unit 4: Aggregate Demand | AD derived from IS-LM, wealth, interest rate and exchange rate effects, rightward AD shifts | Q2 |
| Block 2: GDP and Price Level in Short-Run and Long-Run | Unit 5: Aggregate Supply | Medium-run AS curve, input prices, technology, public policy and natural disasters as shifters | Q7 |
| Block 2: GDP and Price Level in Short-Run and Long-Run | Unit 6: Equilibrium Output and Prices | Expansionary fiscal policy, flat vs vertical AS range, output gap, crowding out | Q13, Q14(b) |
| Block 3: Inflation and Unemployment | Unit 7: Inflation: Concept, Types and Measurement | Moderate, galloping and hyper-inflation, core inflation, deflation | Q3 |
| Block 3: Inflation and Unemployment | Unit 8: Causes and Effects of Inflation | Demand-pull vs cost-push, gainers and losers from inflation, stagflation | Q3, Q12, Q14(a) |
| Block 3: Inflation and Unemployment | Unit 9: Phillips Curve | Short-run trade-off, NAIRU, natural rate, adaptive and rational expectations, sacrifice ratio | Q5, Q9, Q11, Q14(c) |
| Block 4: Balance of Payments and Exchange Rate | Unit 10: Balance of Payments | Trade, services and transfers, current vs capital account, BoP deficit | Q8 |
| Block 4: Balance of Payments and Exchange Rate | Unit 11: Exchange Rate Determination | Floating, fixed and managed regimes, real exchange rate R = EP/P*, interest parity, PPP | Q6, Q10, Q14(d) |
Block and unit titles above match the official course listing on eGyanKosh, IGNOU's study material repository, so you can open any unit and read the source text alongside our answers.
Unit 3 is the only unit without its own question in the paper. It is a medium-priority topic, so skim the IS-LM adjustment diagram once; if you want unit-wise notes for it, our BECC 134 Study Material covers every unit in the same simple language.
How We Picked the IGNOU BECC 134 Important Questions
We counted how often each topic appeared across past term-end papers, then ranked it by frequency and by how recently it went missing.
A topic that shows up in five of six sessions is an obvious pick. The less obvious picks are topics that have sat out one or two recent sessions, because IGNOU papers tend to bring them back. That second rule is why the IS curve is in the paper even though it has appeared only twice.
| Topic | Unit | Times asked (of 6) | How it is usually framed |
|---|---|---|---|
| AD curve derivation and slope | Unit 4 | 5 | Derivation from IS-LM, sometimes paired with reasons for a rightward shift |
| Inflation meaning, types and causes | Units 7 and 8 | 5 | Long answer asking for types, or demand-side vs supply-side causes with a diagram |
| Phillips curve, short run vs long run | Unit 9 | 5 | Why the curve slopes down in the short run but is vertical in the long run |
| Medium-run AS curve shifts | Unit 5 | 5 | 12-mark question that explicitly asks for diagrams |
| Asset market and monetary approaches | Unit 11 | 5 | Short-run vs long-run exchange rate determination |
| Exchange rate regimes | Unit 11 | 5 | Types of regime, once asked as a fixed vs floating short note |
| LM curve derivation, slope and position | Unit 2 | 4 | Slope through k and h, position through M/P |
| Types and natural rate of unemployment | Unit 9 | 4 | Section A in December 2023, otherwise a 12-mark answer |
| Expansionary fiscal or monetary policy | Unit 6 | 4 | Effect on equilibrium price and output |
| Sacrifice ratio or cold turkey vs gradualism | Unit 9 | 4 | Section C short note on the cost of disinflation |
| IS curve derivation and slope | Unit 1 | 2 | Asked in June 2024 and June 2025 only, both in Section A |
The table shows the six most recently tabulated sessions. Older papers from the five-year window and the June 2026 paper were used to confirm the ranking rather than listed column by column, which keeps the table readable.
You can check any of this yourself. Every IGNOU Previous Year Question Paper for BECC 134 we worked from is on our site, and comparing two or three sessions side by side is a good way to see the repeat pattern with your own eyes.
BECC 134 Exam Pattern: Sections, Marks and Word Limits
The BECC 134 term-end exam is 3 hours long and carries 100 marks across three sections: 40 marks in Section A, 48 in Section B and 12 in Section C.
| Section | What you attempt | Word limit | Marks | Guess paper Q | Suggested time |
|---|---|---|---|---|---|
| A | Any two long questions | About 500 words each | 2 × 20 = 40 | Q1 to Q6 | 70 minutes |
| B | Any four medium questions | About 250 words each | 4 × 12 = 48 | Q7 to Q13 | 85 minutes |
| C | Short notes on any two topics | About 150 words each | 2 × 6 = 12 | Q14 (four notes) | 20 minutes, then 5 to review |
This pattern is taken from IGNOU's own papers, such as the June 2024 BECC-134 question paper on the IGNOU website. Section C word limits are not printed on the paper, so 150 words is our recommendation.
Diagrams are where easy marks hide. Examiners expect a labelled IS-LM, AD-AS or Phillips curve figure whenever the question touches those models, and a clean diagram often does more for your grade than an extra paragraph.
7-Day Revision Plan for Principles of Macroeconomics-II (BECC 134)
Seven focused days are enough to cover all 14 answers if you study block by block and keep the last day for a timed mock.
Start with the models, because inflation and exchange rate answers keep referring back to IS-LM and AD-AS. These Principles of Macroeconomics-II Important Questions get much easier once the diagrams feel familiar.
| Day | What to cover | Questions |
|---|---|---|
| Day 1 | IS and LM derivations; practise explaining slope with b, k and h | Q1, Q4 |
| Day 2 | AD curve and its three effects, then medium-run AS shifters with diagrams | Q2, Q7 |
| Day 3 | Expansionary fiscal policy on flat and vertical AS ranges, plus output gap | Q13, Q14(b) |
| Day 4 | Inflation types, demand-pull vs cost-push table, gainers and losers, stagflation | Q3, Q12, Q14(a) |
| Day 5 | Phillips curve, natural rate, unemployment types, expectations, sacrifice ratio | Q5, Q9, Q11, Q14(c) |
| Day 6 | BoP components, exchange regimes, real exchange rate formula, PPP and interest parity | Q6, Q8, Q10, Q14(d) |
| Day 7 | Timed 3-hour mock: two Section A, four Section B and two short notes from memory | Mixed |
Writing more than one course this term? Our BAG Guess Paper sets follow this same block-by-block plan, so you can run two subjects side by side without mixing them up.
On Day 7, write answers by hand. Typing or reading silently hides the real problem most students face in BECC 134, which is running out of time on the second long answer.
Who Should Order the BECC 134 Guess Paper and How
Order the full paper by sending "BECC 134" on WhatsApp to 9899436384; the PDF is shared on the same chat once payment is confirmed.
This guess paper is built for students of IGNOU's Bachelor of Arts (General) who have Economics as a discipline, especially anyone repeating the course or starting revision late. If you already know the textbook well, it works as a fast final check.
Here is how it works: message us with the course code, get the price and payment options, pay, and receive the file. If you have a doubt about any answer after you start studying, the same WhatsApp number is where our faculty will help you.
Ordering takes about as long as reading one of the samples above, so don't leave it until the week of your exam.
BECC 134 Principles of Macroeconomics-II Guess Paper FAQs
What is included in the IGNOU BECC 134 Solved Guess Paper 2026?
The paper holds 14 questions with full answers from all four blocks of Principles of Macroeconomics-II. Six are 20-mark Section A questions, seven are 12-mark Section B questions, and the last bundles four Section C short notes. You also get three exam rule pages, a priority legend and a topic frequency table covering the six sessions from June 2023 to December 2025.
Which question papers were analysed for the IGNOU BECC 134 Guess Paper?
Our faculty went through BECC 134 term-end papers from the last five years and checked the December 2025 and June 2026 papers last. The frequency table inside the file tracks every major topic across June 2023 to December 2025, marking where each one appeared, so you can see why a question made the final list.
Can the Principles of Macroeconomics-II guess paper alone help me pass BECC 134?
It covers the topics that return most often, so it gives you a strong base for the BECC 134 exam. It is still a prediction, not a leaked paper, so read the IGNOU block summaries for Units 3 and 6 as well. Students who learn these 14 answers and practise the diagrams usually walk in far more confident.
How do I get the full BECC 134 guess paper with all answers?
Send a message on WhatsApp to 9899436384 with the course code BECC 134 and your exam session. Our team shares the price and payment options, and once payment is confirmed you receive the complete guess paper as a PDF on the same chat. The five samples on this page show exactly the answer style you will get.
What are the most repeated BECC 134 Important Questions?
Across the six sessions tracked in our file, the AD curve derivation, inflation types and causes, the Phillips curve, medium-run AS curve shifts and the asset market and monetary approaches to the exchange rate each appeared five times, as did exchange rate regimes. The LM curve, unemployment types and fiscal policy follow with four each, so Principles of Macroeconomics-II students should start there.
What is the exam pattern of BECC 134 Principles of Macroeconomics-II?
The BECC 134 term-end exam runs for 3 hours and carries 100 marks. Section A asks you to answer two questions in about 500 words each for 40 marks. Section B asks for four answers of about 250 words each for 48 marks. Section C asks for short notes on any two topics for 12 marks.
Is the BECC 134 guess paper written from the IGNOU textbook?
Yes. Every answer in the BECC 134 guess paper follows the IGNOU Principles of Macroeconomics-II block material, including its definitions, equations and list counts. We simplify the language so it is easier to remember. The file is a study aid prepared by Unnati Educations and is not an official IGNOU publication or a copy of any upcoming paper.
Which IGNOU programme students study BECC 134 Principles of Macroeconomics-II?
BECC 134 is a discipline course in the Economics stream of IGNOU's Bachelor of Arts (General), known as BAG. It follows BECC-133 Principles of Macroeconomics-I, so the two are best studied together. Any BAG student who has chosen Economics and is appearing for the December 2026 term-end exam can use this guess paper for focused revision.