BECC 103 key facts: June 2026
- Course code: BECC-103
- Subject: Introductory Macroeconomics
- Programme: B.A. (Honours) Economics (BAECH), core course, Semester II
- Credits: 6 (three tutor-marked assignments)
- Blocks and units: 5 blocks, 14 units
- Maximum marks: 100 (term-end exam 70 per cent, assignments 30 per cent)
- Duration: 3 hours
- Questions in the June 2026 paper: 15 answerable items (11 numbered questions plus 4 short-note options in Q12); you attempt 8
- Expected length: about 500 words in Section A, 250 words in Section B
- Samples shown on this page: 2 (Q1 and Q2); all 15 answers in the paid file
BECC 103 Solved Question Paper June 2026 gives you exam-ready answers to every question IGNOU set for Introductory Macroeconomics in the June 2026 term-end exam. Two full answers are open below so you can judge the quality first; the complete file reaches you on WhatsApp.
1. What the June 2026 Solved Paper Covers
BECC 103 Introductory Macroeconomics is the six-credit Semester II core course of IGNOU's B.A. (Honours) Economics programme, and this file solves its June 2026 paper in full.
The June 2026 paper has 11 numbered questions and four short-note options, so the file carries 15 answers. It spans all five blocks, from the income method of national income to the classical and Keynesian ranges of the LM curve.
This paper leans heavily on Block 2 and Block 5. Money supply, the Keynesian demand for money, monetary policy tools and the Liquidity Adjustment Facility together account for five of the fifteen questions, while IS-LM adds three more. Students who skip money and IS-LM will struggle to find four Section B questions they can answer well.
2. Two Answers Solved in Full, Thirteen Held Back
Below are complete answers to Question 1 and Question 2 from Section A of the June 2026 paper, each written to the 500-word length the paper asks for.
Both answers follow the pattern IGNOU examiners reward: a short introduction, clear headings, a diagram or table where it earns marks, and a conclusion that ties back to the question.
Demand pull and cost push inflation, and the effects of inflation
Question 1: Differentiate between demand pull inflation and cost push inflation. Discuss various effects of inflation. (20)
Introduction. Inflation is a sustained rise in the general price level, not a one-time jump in the price of a single good. In India it is tracked mainly through the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). Economists group inflation by where the pressure starts: from the demand side or from the cost side.
Demand pull inflation
This arises when aggregate demand runs ahead of aggregate supply, often summed up as too much money chasing too few goods. When the economy is near full employment, output cannot expand fast enough, so the extra spending shows up as higher prices. On a diagram, the AD curve shifts right along an upward-sloping AS curve, and once AS turns vertical only prices rise.
Common causes are an expansion in money supply and bank credit, deficit-financed government spending, a cut in taxes that raises disposable income, a boom in exports and a rise in private investment. Each of these adds to spending without an equal addition to goods in the market.
Cost push inflation
Here prices rise because the cost of producing goods goes up, even when demand has not changed. The AS curve shifts left, so the price level rises while output falls. Its main forms are wage push (unions winning wage rises above productivity growth), profit push (firms with market power raising margins) and supply shocks such as the 1973 oil price rise by OPEC or a failed monsoon crop.
| Basis | Demand pull inflation | Cost push inflation |
|---|---|---|
| Starting point | Excess aggregate demand | Rise in input costs or supply shock |
| Curve that shifts | AD shifts to the right | AS shifts to the left |
| Effect on output | Output rises until full employment | Output falls, which can lead to stagflation |
| Typical trigger | Money supply growth, deficit spending | Wage hikes, oil prices, crop failure |
| Usual remedy | Tight monetary and fiscal policy | Supply-side steps, productivity, buffer stocks |
In practice the two often feed each other. Higher prices lead workers to demand higher wages, higher wages push up costs, and firms raise prices again. This wage-price spiral is why it is hard to label any real inflation episode as purely one type.
Effects on distribution
Inflation shifts income between groups. Debtors gain and creditors lose, because loans are repaid in money of lower purchasing power. People on fixed incomes, such as pensioners and many salaried workers, lose real income. Business owners and traders often gain because selling prices rise faster than many of their costs.
Effects on production, saving and trade
Mild inflation can lift profits and encourage investment, but high inflation creates uncertainty and pulls money into hoarding, gold and real estate speculation. It lowers the real return on bank deposits, which discourages saving. Domestic goods become costlier abroad, so exports fall and imports rise, putting pressure on the balance of payments.
Other costs
Inflation acts as a hidden tax on people holding cash. It pushes taxpayers into higher brackets without any rise in real income, and it creates menu costs for firms that must keep revising prices and shoe-leather costs for households that hold less money. In hyperinflation, money stops working as a store of value and even as a medium of exchange.
Conclusion. Demand pull and cost push inflation start from different sides of the market, so they need different cures. Because inflation hurts savers and the poor the most, India adopted flexible inflation targeting in 2016 through an amendment to the RBI Act, 1934, under which the Reserve Bank of India aims to keep CPI inflation at 4 per cent within a band of 2 to 6 per cent.
The investment multiplier and its limitations
Question 2: Explain the concept of investment multiplier with the help of a diagram. What are its limitations? (20)
Introduction. The investment multiplier shows how a change in investment leads to a larger change in national income. The idea was first set out by R.F. Kahn in 1931 as an employment multiplier, and J.M. Keynes built it into his General Theory in 1936 as the investment multiplier.
Meaning and formula. The multiplier (k) is the ratio of the change in income to the change in investment:
k = ΔY / ΔI = 1 / (1 − MPC) = 1 / MPS
It depends on the marginal propensity to consume (MPC). Since MPC plus MPS equals one, the higher the share of extra income that people spend, the bigger the multiplier.
Derivation. In a two-sector economy, equilibrium income is Y = C + I, and consumption is C = a + bY, where b is the MPC. Substituting gives Y = (a + I) / (1 − b). If investment changes by ΔI while a and b stay the same, income changes by ΔY = ΔI / (1 − b). This is the multiplier relationship.
Working of the multiplier. Suppose MPC is 0.8 and investment rises by ₹100 crore. The first ₹100 crore becomes income for workers and suppliers, who spend ₹80 crore, which becomes someone else's income, who spends ₹64 crore, and so on. The rounds add up to ₹500 crore, so k = 1 / 0.2 = 5. With an MPC of 0.5 the multiplier is only 2, and with 0.9 it is 10.
Diagram to draw: a Keynesian cross with income (Y) on the horizontal axis and aggregate demand (AD) on the vertical axis. Draw a dashed 45° line (Y = AD) from the origin. Draw an upward-sloping aggregate demand line C + I0 cutting the 45° line at E0, and a second, parallel line C + I1 above it, cutting the 45° line at E1. Drop dashed lines from E0 and E1 to the horizontal axis at Y0 and Y1. Mark the vertical gap between the two AD lines as ΔI and the horizontal gap between Y0 and Y1 as ΔY, showing ΔY is clearly larger than ΔI.
Explaining the diagram. The 45° line shows all points where income equals demand. Equilibrium is first at E0, where C + I0 cuts the 45° line, giving income Y0. When investment rises, the AD line shifts up by ΔI to C + I1, and the new equilibrium is E1 with income Y1. The horizontal gap ΔY is clearly larger than the vertical shift ΔI, and that gap is the multiplier at work.
Limitations of the investment multiplier
- Leakages. Saving, taxes, imports, debt repayment and hoarding reduce each round of spending, so the real multiplier is smaller than the textbook figure.
- Unemployed resources assumed. Near full employment, extra demand raises prices instead of real output.
- Constant MPC assumed, but it can change as income changes.
- Static and timeless. The simple multiplier ignores time lags; in reality the rounds of spending take months to complete.
- Elastic supply needed. Consumer goods must be available, otherwise extra spending runs into shortages.
- Sustained investment needed. It works only for net autonomous investment that continues; a one-off injection fades away.
- Closed-economy formula. Once imports enter, the multiplier falls to 1 / (MPS + MPM).
- Ignores induced investment, which the accelerator principle covers.
V.K.R.V. Rao argued in 1952 that the multiplier works weakly in underdeveloped economies because of disguised unemployment and supply bottlenecks in farming.
Conclusion. The investment multiplier explains why a change in investment, or in any autonomous spending, can move national income by several times its own size. It remains a core tool of Keynesian policy, but its real-world strength depends on leakages, spare capacity and the speed of spending rounds.
3. Questions Answered Only in the Full File
The remaining 13 items are printed below exactly as they appear in the June 2026 paper.
Section A (any two, 20 marks each)
Question 3: Explain the process of national income determination in a three-sector model with the help of a diagram. What is the effect of a change in government spending on the magnitude of the multiplier?
Question 4: What are the objectives of monetary policy? Explain the various quantitative and qualitative instruments available to the central bank for implementation of monetary policy.
Section B (any four, 12 marks each)
Question 5: How is national income measured using the income method? What precautions need to be taken in measuring national income using this method?
Question 6: "The overall money supply in the economy is the outcome of the behaviour of banks, public and central bank." Explain this statement by deriving the money multiplier.
Question 7: Explain the Keynesian theory of demand for money. Also derive the liquidity preference curve.
Question 8: Explain the simultaneous equilibrium in the goods market and money market.
Question 9: Derive the labour demand and labour supply curves.
Question 10: Explain the factors that influence the IS curve.
Question 11: Differentiate between the classical and Keynesian range of the LM curve.
Section C (any two, 6 marks each)
Question 12: Write short notes on any two of the following.
(a) Real and nominal GDP
(b) Hot money
(c) Liquidity Adjustment Facility
(d) Keynesian cross
These questions cover the three-sector income model, monetary policy instruments, the money multiplier, liquidity preference, the labour market and both IS and LM curves. Their full answers, with diagrams, are only in the paid file.
4. Block and Unit Syllabus
BECC 103 is taught through five blocks and 14 units, moving from national income accounting to money, inflation, the short-run closed economy and IS-LM analysis.
The block titles below are taken from the official BECC-103 course page on eGyanKosh, and the last column shows which June 2026 questions come from each block.
| Block | Units | Key topics to revise | June 2026 questions |
|---|---|---|---|
| Block 1: Issues in Macroeconomics and National Income Accounting | Issues and Concepts; National Income Accounting; Measuring Economic Performance | Circular flow in two and three sectors; GDP, GNP and NNP at factor cost; income, expenditure and value-added methods | Q5, Q12(a) |
| Block 2: Money in a Modern Economy | Functions of Money; Demand for Money; Monetary Policy | Measures of money supply and the money multiplier; transactions, precautionary and speculative motives; CRR, repo rate and open market operations | Q4, Q6, Q7, Q12(b), Q12(c) |
| Block 3: Inflation | Inflation: Concept, Types and Measurement; Causes and Effects of Inflation | WPI and CPI as price indices; demand pull, cost push and structural inflation; wage-price spiral and stagflation | Q1 (Sample 1) |
| Block 4: The Closed Economy in the Short Run | Classical and Keynesian Systems; Keynesian Model of Income Determination; Fiscal Policy in the Keynesian Model | Say's law and the classical labour market; Keynesian cross and investment multiplier; government spending and balanced budget multipliers | Q2 (Sample 2), Q3, Q9, Q12(d) |
| Block 5: IS-LM Analysis | Equilibrium in the Real Sector; Equilibrium in the Monetary Sector; Neoclassical Synthesis | Slope and shifts of the IS curve; Keynesian, intermediate and classical ranges of the LM curve; adjustment towards joint equilibrium | Q8, Q10, Q11 |
If you want the full block-wise notes rather than exam answers, our BECC 103 Study Material follows the same five-block order, so you can move between notes and solved answers without losing your place.
5. Question Paper Pattern and Marks Split
The June 2026 paper is a three-hour, 100-mark paper split into three sections, and you write eight answers in total.
| Section | Questions given | Attempt | Length asked | Marks |
|---|---|---|---|---|
| Section A | 4 long questions (Q1 to Q4) | Any 2 | About 500 words each | 2 × 20 = 40 |
| Section B | 7 medium questions (Q5 to Q11) | Any 4 | About 250 words each | 4 × 12 = 48 |
| Section C | 4 short-note options in Q12 | Any 2 | Short notes | 2 × 6 = 12 |
Section B decides most results. It carries 48 marks, nearly half the paper, and gives you seven choices, so a strong grip on money and IS-LM lets you pick four safe questions. The solved file covers every option, which means you are never stuck with only three answers you can write.
For older papers set in the same pattern, browse our IGNOU Previous Year Question Paper collection and practise one full paper in three hours before your exam.
6. Most Repeated Topics Across Official Papers
Seven of the June 2026 themes appeared in all four official BECC 103 papers we checked, so the same macro ideas keep coming back in new wording.
We compared the June 2026 paper with four official IGNOU papers: June 2022, December 2022, December 2023 and June 2024. The table counts how many of those four sessions asked each June 2026 topic.
| Topic | June 2026 question | Where it was asked before | Sessions (of 4) |
|---|---|---|---|
| Inflation: types, causes and effects | Q1 (Sample 1) | Jun 22 Q5; Dec 22 Q4; Dec 23 Q4; Jun 24 Q6 and Q10 | 4 |
| Monetary policy objectives and instruments | Q4, Q12(c) | Jun 22 Q7 and Q9; Dec 22 Q7; Dec 23 Q12(a); Jun 24 Q2 | 4 |
| Keynesian demand for money and liquidity trap | Q7 | Jun 22 Q11(a) and Q11(c); Dec 22 Q8; Dec 23 Q12(c); Jun 24 Q12(c) | 4 |
| IS-LM joint equilibrium and adjustment | Q8 | Jun 22 Q8; Dec 22 Q2 and Q11; Dec 23 Q2; Jun 24 Q4 | 4 |
| Money supply, credit creation and monetary base | Q6 | Jun 22 Q2; Dec 22 Q12(b) and Q12(d); Dec 23 Q9; Jun 24 Q12(d) | 4 |
| Government spending, taxes and fiscal multipliers | Q3 | Jun 22 Q10; Dec 22 Q5 and Q12(a); Dec 23 Q7; Jun 24 Q12(b) | 4 |
| Classical system, labour market and full employment | Q9 | Jun 22 Q1; Dec 22 Q1; Dec 23 Q3 and Q6; Jun 24 Q3 | 4 |
| Investment multiplier and its limitations | Q2 (Sample 2) | Dec 22 Q10; Dec 23 Q7; Jun 24 Q5 | 3 |
| National income measurement methods | Q5 | Jun 22 Q4; Dec 23 Q11; Jun 24 Q8 and Q9 | 3 |
| Keynesian cross and income determination | Q12(d) | Jun 22 Q6; Dec 23 Q1; Jun 24 Q11 | 3 |
| LM curve derivation, slope and ranges | Q11 | Jun 22 Q3; Dec 22 Q2; Dec 23 Q8 | 3 |
| Hot money | Q12(b) | Jun 22 Q2; Dec 23 Q12(b) | 2 |
| Factors shaping the IS curve | Q10 | Dec 22 Q2 | 1 |
| Real and nominal GDP | Q12(a) | Not asked directly; related aggregates in Dec 22 Q12(c), Dec 23 Q12(d), Jun 24 Q9 | 0 |
The pattern is clear: inflation, money and IS-LM are near-certain every session, while the IS curve factors and real versus nominal GDP are rarer. If you are preparing for the next session, our IGNOU Solved Guess Paper page lists the likely questions for each course.
7. How Our Answers Are Drafted and Checked
Every BECC 103 answer is written from the eGyanKosh blocks and reviewed before it goes into the file.
We start from the exact question wording in the June 2026 paper and match each part of the question to a heading, so no part goes unanswered. Section A answers get an introduction, three to five sub-headings and a conclusion; Section B answers stay tight and point-wise at about 250 words.
Macroeconomics answers lose marks when diagrams are unlabelled or formulas skip steps, so every curve has named axes and every multiplier is derived line by line. Indian examples, such as RBI tools and the CPI target, are used only where they are accurate and relevant to the question.
Before release, the reviewer checks each answer against the BECC 103 blocks and against how the same topic was asked in earlier sessions. Students preparing the full programme can also use our BAECH Question Paper collection for other core courses.
8. Solved File Index for All 15 Questions
The file answers all 15 questions of the June 2026 paper; 2 are open on this page and 13 are in the full file only.
This is a theory-only course with no practical or record work, so instead of a practical file we list every question, the block it comes from and where its answer sits.
| Question | Topic | Block | Where the answer is |
|---|---|---|---|
| Q1 | Demand pull vs cost push inflation; effects | Block 3 | Sample 1 above |
| Q2 | Investment multiplier with diagram; limitations | Block 4 | Sample 2 above |
| Q3 | Income determination in a three-sector model | Block 4 | Full file |
| Q4 | Monetary policy objectives and instruments | Block 2 | Full file |
| Q5 | Income method of national income; precautions | Block 1 | Full file |
| Q6 | Money multiplier and the behaviour of banks, public and RBI | Block 2 | Full file |
| Q7 | Keynesian demand for money; liquidity preference curve | Block 2 | Full file |
| Q8 | Joint equilibrium in goods and money markets | Block 5 | Full file |
| Q9 | Labour demand and labour supply curves | Block 4 | Full file |
| Q10 | Factors influencing the IS curve | Block 5 | Full file |
| Q11 | Classical vs Keynesian range of the LM curve | Block 5 | Full file |
| Q12(a) | Short note: real and nominal GDP | Block 1 | Full file |
| Q12(b) | Short note: hot money | Block 2 | Full file |
| Q12(c) | Short note: Liquidity Adjustment Facility | Block 2 | Full file |
| Q12(d) | Short note: Keynesian cross | Block 4 | Full file |
9. Programmes That Include BECC 103
BECC 103 Introductory Macroeconomics is a core course in the second semester of IGNOU's B.A. (Honours) Economics (BAECH) programme.
On eGyanKosh the course sits under the Bachelor of Arts (Honours) Economics core courses for Semester II, right after Introductory Microeconomics and Mathematical Methods for Economics-I. It builds the base for Intermediate Macroeconomics later in the programme.
Learners in other IGNOU bachelor's streams who have BECC-103 in their course list sit the same term-end paper, so the same solved file applies. Check your programme guide to confirm the code before you order.
10. How to Get the Full Solved Question Paper
Message WhatsApp 9899436384 with "BECC 103 June 2026" to get the complete solved file with all 15 answers as a PDF.
The file contains the 2 answers shown above plus the 13 answers that appear nowhere on this page, including the three-sector income model, the money multiplier, liquidity preference and both IS and LM curves. Our team replies with the price and shares the PDF after payment.
11. BECC 103 Introductory Macroeconomics FAQs
Quick answers to the questions students ask most about the June 2026 solved file.
What is inside the Solved Question Paper for June 2026?
The file holds model answers to all 15 questions of the IGNOU June 2026 BECC 103 paper. That means the 11 numbered questions plus all four short-note options in Question 12. Section A answers run to about 500 words and Section B answers to about 250 words, so you can practise at the length the paper itself asks for.
How do I get the full solved file on WhatsApp?
Send a message to WhatsApp 9899436384 with the code BECC 103 and the session June 2026. Our team replies with the price and shares the PDF once payment is done. The file has all 15 answers: the 2 answers you can read on this page plus the 13 answers that are available only in the full file.
Which questions are fully solved on this page?
Question 1 on demand pull and cost push inflation and Question 2 on the investment multiplier are shown with complete answers. Both are 20-mark Section A questions, so they show the depth, diagrams and structure used across the whole file. The other 13 questions are listed only as printed in the paper.
Is BECC 103 a six-credit course?
Yes. The official IGNOU assignment booklet for BECC 103 asks for three assignments, and IGNOU sets three assignments for a six-credit course and two for a four-credit one. Assignments carry 30 per cent weightage in the final result and the term-end exam carries 70 per cent, so a strong exam script matters most for your grade.
How many questions must I attempt in the BECC 103 exam?
You write eight answers in three hours. Section A asks for any two of four questions at 20 marks each, Section B asks for any four of seven questions at 12 marks each, and Section C asks for any two of four short notes at 6 marks each. Together these make 40, 48 and 12 marks, for a total of 100.
Which BECC 103 topics repeat most often in IGNOU papers?
Across the four official papers we checked, from June 2022 to June 2024, seven themes appeared in every session: inflation, monetary policy instruments, Keynesian demand for money, IS-LM equilibrium, money supply, fiscal policy in the Keynesian model and the classical system. The investment multiplier, national income methods and the LM curve each appeared in three of the four.
Do the answers include diagrams?
Yes. Wherever the paper asks for a diagram, or where a graph earns marks, the answer includes a neat labelled figure with a short explanation. That covers the Keynesian cross, the three-sector income model, the liquidity preference curve, labour demand and supply curves, and IS-LM equilibrium.
Are the answers matched to the eGyanKosh blocks?
Yes. Every answer is tied to one of the five BECC 103 blocks on eGyanKosh, from national income accounting and money to inflation, the short-run closed economy and IS-LM analysis. The file index on this page shows which block each question comes from, so you can open the right block for extra reading before the exam.
12. Who Wrote and Checked the BECC 103 Answers
The BECC 103 answers were written by Prateek Talwar and reviewed by Sheetal Kirola.
Prateek Talwar, founder of Unnati Educations, leads the IGNOU solved-paper series and prepares answers from the course blocks and the official term-end paper. Sheetal Kirola, Academic Head (M.Ed.), checks every derivation, diagram label and policy figure before release.