BECC 133 key facts: June 2026
- Course code: BECC 133
- Subject: Principles of Macroeconomics-I
- Programme: Bachelor of Arts (General), BAG; also listed for BAM
- School: School of Social Sciences (SOSS)
- Credits: 6 (three tutor-marked assignments)
- Blocks and units: 4 blocks, 10 units
- Maximum marks: 100 (term-end exam 70 per cent, assignments 30 per cent)
- Duration: 3 hours
- Questions in the June 2026 paper: 12 (Q3 and Q5 have two parts; Q12 offers four short notes); you attempt 8
- Expected length: about 500 words in Section A, 250 in Section B, 100 per short note
- Sample answers on this page: 2 (Q1 and Q8); all 12 answers in the paid file
BECC 133 Solved Question Paper June 2026 gives you exam-length answers to every question in the official IGNOU Principles of Macroeconomics-I term-end paper. Two full answers are open below so you can judge the quality; the remaining 10 questions are listed exactly as printed and are answered only in the complete file.
1. What the June 2026 Solved Paper Covers
BECC 133 Principles of Macroeconomics-I is a six-credit core economics course in IGNOU's Bachelor of Arts (General) programme that introduces national income, income determination, the open economy and money.
The June 2026 paper has 12 questions across three sections. Section A asks for long answers on national income, classical theory, the money market and the budget surplus. Section B moves through business cycles, the Keynesian Cross, the tax multiplier, the Balance of Payments, net exports, credit creation and credit control. Section C closes with four short-note options.
Our file answers each of these in the order printed on the paper, so every answer sits next to its own question number. If you also want the unsolved papers from earlier sessions, start with our IGNOU Previous Year Question Paper collection.
2. Two Answers Solved in Full, Ten Held Back
Question 1 on national income (20 marks) and Question 8 on why the Balance of Payments always balances (12 marks) are shown below in full.
We picked one Section A answer and one Section B answer so you can see both lengths. Both topics appeared in every official BECC 133 paper we checked, which makes them worth learning first.
National income and the methods of measuring it
Question 1: Define national income. Explain the various methods of measuring national income. (20)
National income is the money value of all final goods and services produced by the normal residents of a country during an accounting year, after allowing for depreciation. In precise terms it is Net National Product at factor cost (NNP at FC), the sum of factor incomes (wages, rent, interest and profit) earned by residents, whether earned at home or abroad.
Gross Domestic Product at market price (GDP at MP) measures output produced within the domestic territory. Adding net factor income from abroad (NFIA) gives GNP, subtracting depreciation gives NNP, and subtracting net indirect taxes (indirect taxes minus subsidies) gives national income:
NNP at FC = GDP at MP + NFIA − Depreciation − Net Indirect Taxes
Because every rupee of output becomes someone's income and that income is then spent, national income can be measured at three points of the circular flow: production, distribution and disposal. This gives us three methods.
1. Value added (product) method
- Classify producing units into the primary, secondary and tertiary sectors.
- Estimate the value of output of each sector (sales plus change in stock).
- Subtract intermediate consumption to get gross value added at market price.
- Add the gross value added of all sectors to get GDP at MP, then adjust for depreciation, net indirect taxes and NFIA.
Example: a farmer sells wheat worth ₹100 to a miller, the miller sells flour worth ₹150 to a baker, and the baker sells bread worth ₹220. Value added is ₹100 + ₹50 + ₹70 = ₹220, equal to the value of the final product. Adding all three sales (₹470) would be double counting.
Precautions: count only value added, exclude the sale of second-hand goods (only the dealer's commission counts), and include production for self-consumption, such as grain kept by farm households, along with the imputed rent of owner-occupied houses.
2. Income method
- Identify the producing enterprises and group them into sectors.
- Classify factor payments into compensation of employees (wages, salaries and employers' social security contributions), operating surplus (rent, interest and profit, including dividends, corporate tax and undistributed profit) and mixed income of the self-employed.
- Add these for all sectors to get Net Domestic Product at factor cost, then add NFIA to arrive at NNP at FC.
Precautions: leave out transfer payments such as old-age pensions and scholarships, windfall gains such as lottery prizes, capital gains from selling shares or property, and illegal income. Include imputed rent and income received in kind, such as housing provided by an employer.
3. Expenditure method
- Private final consumption expenditure by households.
- Government final consumption expenditure.
- Gross domestic capital formation (fixed investment plus change in stocks).
- Net exports (exports minus imports).
Their sum gives GDP at MP:
GDP = C + I + G + (X − M)
National income then follows from the same adjustments as above. Precautions: exclude spending on intermediate goods, second-hand goods and financial assets such as shares and bonds, and exclude government transfer payments, which do not buy current output.
Conclusion. In theory the three methods give the same total, because output, income and spending are three views of one circular flow. In practice data gaps create differences. In India, the National Statistical Office (NSO) builds its main estimate from the production side and publishes expenditure components alongside it, showing the gap as discrepancies.
Why the Balance of Payments always balances
Question 8: Explain why the Balance of Payments (BoP) always balances. (12)
The Balance of Payments (BoP) is a systematic record of all economic transactions between the residents of a country and the rest of the world during a year. It always balances in the accounting sense because it is built on double-entry book-keeping: every transaction is recorded twice, once as a credit and once as a debit of equal value.
The BoP has two main accounts. The current account records exports and imports of goods and services, income flows and transfers. The capital and financial account records foreign direct investment, portfolio investment, loans, banking capital and changes in official foreign exchange reserves.
Suppose imports exceed exports, creating a current account deficit. That deficit has to be paid for, either by capital inflows (foreigners buying Indian assets or lending to Indians) or by the central bank selling foreign exchange from its reserves. Each financing entry is a credit equal to the deficit, so:
Current account + Capital and financial account + Change in reserves + Errors and omissions = 0
Illustration (hypothetical figures): a current account deficit of ₹500 crore, financed by ₹350 crore of investment and loans and ₹150 crore drawn from reserves, leaves the overall BoP at zero. The errors and omissions entry absorbs any mismatch caused by incomplete data.
Accounting balance is different from economic balance. Autonomous transactions are made for their own sake, such as trade or profit-seeking investment; accommodating transactions, such as the use of reserves, happen only to cover a gap. A BoP deficit or surplus refers to autonomous items, while the full account, including accommodating items, always balances.
3. Questions Answered Only in the Full File
The 10 questions below are printed exactly as they appear in the June 2026 paper. Their answers, including both parts of Questions 3 and 5 and all four short notes in Question 12, are inside the complete file only.
Section A (any two, 20 marks each)
Question 2: Explain the salient features of the classical theory of output and employment. How is it different from the Keynesian view? (20)
Question 3: (a) Explain the determination of money market equilibrium. Show the effect of an increase in nominal money supply on the interest rate (diagram is required). (15) (b) How does payment technology affect the demand for money? (5)
Question 4: What is the budget surplus? Explain why an increase in government purchases will reduce the budget surplus by less than the increase in government purchases. (20)
Section B (any four, 12 marks each)
Question 5: (a) Compare the fluctuations of real GDP with the phases of the business cycle. (6) (b) How does the addition of the government sector to the two-sector model change the structure of the model and of the circular flows? (6)
Question 6: Describe the four components of aggregate spending. Explain the concept of the "Keynesian Cross" through a diagram. (6 + 6)
Question 7: Derive the tax multiplier with the help of a diagram. (12)
Question 9: Define the net export function. An increase in the marginal propensity to import reduces the equilibrium level of income in an open economy, while an increase in autonomous exports increases the equilibrium level of income. Explain with the help of diagrams. (12)
Question 10: Define the money multiplier. Explain how the creation of credit by commercial banks can have a multiplier effect on the money supply in the economy. (12)
Question 11: Distinguish between quantitative and qualitative measures of credit control. (12)
Section C (any two, 6 marks each)
Question 12: Write short notes on any two of the following. (6 + 6)
(i) Automatic stabiliser
(ii) Liquidity trap
(iii) Objectives of monetary policy
(iv) Crowding out effect
4. Blocks and Units
BECC 133 is taught through 4 blocks and 10 units, moving from national income accounting to GDP determination, the open economy with government, and money in a modern economy.
The table lists the topics inside each unit that matter most for the term-end paper. Block titles follow the official course page on eGyanKosh, where IGNOU hosts the self-learning material for this course.
| Block | Unit | Topics to master |
|---|---|---|
| Block 1: Issues in Macroeconomics and National Income Accounting | Unit 1: Issues and Concepts | Macro versus micro; short run and long run; stocks and flows; production possibility curve |
| Block 1 | Unit 2: National Income Accounting | Circular flow in two, three and four-sector models; value added method; the problem of double counting |
| Block 1 | Unit 3: Measuring Economic Performance | Real and nominal GDP; GDP deflator; business cycle phases |
| Block 2: Determination of GDP | Unit 4: Classical and Keynesian Systems | Say's law; classical labour market and the vertical aggregate supply curve; Keynes's critique |
| Block 2 | Unit 5: Keynesian Model of Income Determination | Consumption function and MPC; aggregate spending and the Keynesian Cross; investment multiplier |
| Block 3: National Income Determination in an Open Economy with Government | Unit 6: Fiscal Policy in the Keynesian Model | Tax and balanced budget multipliers; budget surplus; automatic stabilisers; crowding out |
| Block 3 | Unit 7: External Sector | BoP and balance of trade; net export function; open economy multiplier; FDI and portfolio flows |
| Block 4: Money in a Modern Economy | Unit 8: Functions of Money | Functions of money; RBI measures of money supply; credit creation and the money multiplier |
| Block 4 | Unit 9: Demand for Money | Transactions, precautionary and speculative motives; liquidity preference; liquidity trap; money market equilibrium |
| Block 4 | Unit 10: Monetary Policy | Objectives of monetary policy; quantitative and qualitative credit control; bank rate and repo rate |
Our answers use the same vocabulary as these units, which helps an evaluator spot the textbook terms quickly. If you want unit-wise notes rather than exam answers, look at our BECC 133 Study Material.
5. Question Paper Pattern and Marks Split
The paper carries 100 marks over 3 hours: you answer 2 of 4 questions in Section A, 4 of 7 in Section B and 2 of 4 short notes in Section C.
| Section | Questions printed | You attempt | Word limit | Marks |
|---|---|---|---|---|
| Section A | Q1 to Q4 (long answer) | Any 2 | About 500 words each | 2 × 20 = 40 |
| Section B | Q5 to Q11 (medium answer) | Any 4 | About 250 words each | 4 × 12 = 48 |
| Section C | Q12, options (i) to (iv) | Any 2 short notes | About 100 words each | 2 × 6 = 12 |
The paper often splits marks inside a question. In June 2026, Question 3 is set as 15 + 5, while Questions 5 and 6 in Section B are 6 + 6, so each part needs its own heading in your answer. Split marks also appeared in the December 2024 and June 2025 papers.
If you are sitting other economics papers in the same stream, compare their formats through our BAG Question Paper pages.
6. Topics IGNOU Keeps Repeating
Seven BECC 133 topics appeared in all four official papers we checked: classical versus Keynesian theory, national income measurement, monetary policy, the multiplier, the Balance of Payments, demand for money and the money multiplier.
We counted topics across the December 2022, December 2024, June 2025 and June 2026 papers published by IGNOU. Each cell shows the question numbers where the topic appeared, so you can open the old paper and read the exact wording.
| Topic | Dec 2022 | Dec 2024 | Jun 2025 | Jun 2026 | Sessions (of 4) |
|---|---|---|---|---|---|
| Classical theory and classical versus Keynesian approach | Q4, Q10, Q11 | Q1, Q11 | Q2, Q10 | Q2 | 4 |
| Measuring national income and double counting | Q9, Q12(d) | Q6, Q12(b) | Q1, Q12(b) | Q1 (Sample 1) | 4 |
| Monetary policy objectives, instruments and credit control | Q2, Q12(c) | Q2, Q10 | Q3, Q12(d) | Q11, Q12(iii) | 4 |
| Multiplier: investment, tax rate and balanced budget | Q1, Q5, Q12(b) | Q4 | Q7 | Q7 | 4 |
| Balance of Payments and why it always balances | Q6 | Q12(c) | Q9 | Q8 (Sample 2) | 4 |
| Keynesian demand for money and liquidity preference | Q8 | Q12(d) | Q11 | Q3(b), Q12(ii) | 4 |
| Money supply measures and the money multiplier | Q7 | Q8 | Q12(c) | Q10 | 4 |
| Equilibrium output in an open economy | Q3 | Q9 | — | Q9 | 3 |
| Government sector in the three and four-sector models | — | Q3 | Q4, Q6, Q8 | Q5(b) | 3 |
| Money market equilibrium | — | Q7 | — | Q3(a) | 2 |
Two patterns stand out. The June 2026 Balance of Payments question closely follows June 2025 Question 9 and December 2022 Question 6, and money market equilibrium has now appeared in both December 2024 and June 2026. For priority lists across many courses, see our IGNOU Solved Guess Paper page.
7. How Our Answers Are Written and Checked
Every answer is written to the marks and word limit printed beside the question, then reviewed line by line before it goes into the file.
The answers use the terms from the BECC 133 blocks, such as NNP at factor cost, operating surplus and accommodating transactions. The review then checks the economics, the arithmetic in worked examples and whether each part of a split question has its own answer.
Where a question asks for a diagram, the answer labels the axes and curves so you can redraw it in the exam hall. Where the English print is hard to follow, such as Question 4 on the budget surplus, the writer reads the Hindi version printed in the same paper before answering.
The December 2022, December 2024 and June 2025 papers were read before writing, so answers on repeated themes reflect how IGNOU has framed those themes in earlier sessions.
8. Solved File Index
The full file answers all 12 questions; 2 are open on this page and 10 are in the full file only.
Use this index to see which unit each question tests. BECC 133 is a theory course with no practical or record work, so this solved file index takes the place of a practical file index.
| Question | Topic | Unit | Where the answer is |
|---|---|---|---|
| Q1 | Meaning of national income and methods of measurement | Unit 2 | Sample 1 above |
| Q2 | Classical theory of output and employment versus Keynes | Unit 4 | Full file |
| Q3 | Money market equilibrium; payment technology and money demand | Unit 9 | Full file |
| Q4 | Budget surplus and government purchases | Unit 6 | Full file |
| Q5 | Real GDP and business cycle phases; adding the government sector | Units 3 and 2 | Full file |
| Q6 | Components of aggregate spending and the Keynesian Cross | Unit 5 | Full file |
| Q7 | Tax multiplier | Unit 6 | Full file |
| Q8 | Why the Balance of Payments always balances | Unit 7 | Sample 2 above |
| Q9 | Net export function, import propensity and autonomous exports | Unit 7 | Full file |
| Q10 | Money multiplier and credit creation by banks | Unit 8 | Full file |
| Q11 | Quantitative and qualitative credit control | Unit 10 | Full file |
| Q12 | Short notes: automatic stabiliser, liquidity trap, objectives of monetary policy, crowding out | Units 6, 9 and 10 | Full file |
9. Programmes That Study BECC 133
BECC 133 is a core economics course in the IGNOU Bachelor of Arts (General) programme, and the assignment booklets also list it for BAM learners.
It is the first half of a pair. BECC 134 Principles of Macroeconomics-II follows it in the BAG economics sequence, so a clear grip on national income and the Keynesian model here makes the second course easier.
BA (Honours) Economics (BAECH) learners study introductory macroeconomics under a separate code, BECC 103, whose blocks overlap with BECC 133 on national income, money and the Keynesian model. Check your own programme guide to confirm which code is on your course list before ordering.
10. How to Get the Full Solved Question Paper
Send "BECC 133 June 2026" on WhatsApp to 9899436384 and our team will share the price, payment details and the complete PDF with all 12 answers.
You have read Questions 1 and 8. The other 10, including the 20-mark questions on classical theory, the money market and the budget surplus, are waiting in the full file. Ordering a week or two before your exam date leaves time to revise and practise the diagrams.
11. BECC 133 Principles of Macroeconomics-I FAQs
Quick answers on the June 2026 solved file, the exam pattern and how to order.
What does the June 2026 solved file include?
The file solves all 12 questions of the official June 2026 BECC 133 paper, including both parts of Questions 3 and 5 and all four short-note options in Question 12. Section A answers are written for about 500 words, Section B answers for about 250 words and short notes for about 100 words. Two of these answers, Questions 1 and 8, are shown in full on this page.
How do I get the full answers on WhatsApp?
Send a WhatsApp message to 9899436384 with the text "BECC 133 June 2026". Our team replies with the price and payment details, and the complete PDF is shared in the same chat after payment. The full file contains answers to all 12 questions: the 2 you can read on this page and the 10 that are listed here as question text only.
Which BECC 133 topics repeat most often in IGNOU papers?
In the four official papers we checked (December 2022, December 2024, June 2025 and June 2026), seven topics appeared in every session: classical versus Keynesian theory, national income measurement, monetary policy, the multiplier, the Balance of Payments, demand for money and the money multiplier. Open economy equilibrium and the government sector appeared in three of the four papers.
How many questions must I attempt in the exam?
You write eight answers: two of the four long questions in Section A at 20 marks each, four of the seven questions in Section B at 12 marks each, and two of the four short notes in Section C at 6 marks each. Together these make 100 marks in a three-hour paper.
Which June 2026 questions need a diagram?
Four questions ask for a diagram in their wording. Question 3(a) states that a diagram is required for the money market and interest rate, Question 6 asks for the Keynesian Cross through a diagram, Question 7 asks for the tax multiplier with a diagram, and Question 9 asks for diagrams on import propensity and autonomous exports. Practise these drawings before the exam.
How many credits is BECC 133 and how is it graded?
BECC 133 is a six-credit core course, so IGNOU sets three tutor-marked assignments for it. Assignments carry 30 per cent weightage in the final result and the term-end examination carries 70 per cent. The term-end paper itself is set for 100 marks and must be finished in three hours.
Will the June 2026 answers help for the December 2026 exam?
Yes, for the most part. BECC 133 papers reuse the same core themes from session to session, so the June 2026 answers cover topics that keep returning, such as national income methods, the Balance of Payments and monetary policy. The exact wording changes each session, so read the answers to understand the reasoning and practise writing them in your own words within the word limits.
Who wrote and reviewed the BECC 133 answers?
The answers were written by Prateek Talwar and reviewed by Sheetal Kirola. Each answer was checked against the official IGNOU block material for Principles of Macroeconomics-I and against the marks and word limits printed in the June 2026 paper, so that the length and structure match what term-end examiners expect.
12. Who Wrote and Checked the BECC 133 Answers
The BECC 133 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 the economics, the arithmetic in worked examples and every diagram label before release.