BECC 134 key facts: June 2026
- Course code: BECC 134
- Subject: Principles of Macroeconomics-II
- Programme: Bachelor of Arts (General), BAG; also listed for BAM
- Credits: 6 (three tutor-marked assignments)
- Blocks and units: 4 blocks, 11 units
- Maximum marks: 100 (term-end exam 70 per cent, assignments 30 per cent)
- Duration: 3 hours
- Questions in the June 2026 paper: 12 (Section A: 4, Section B: 7, Section C: 1 with four options); you attempt 8
- Expected length: about 500 words in Section A, 250 in Section B
- Samples solved on this page: 2 (Q1 and Q7); all 12 answers in the paid file
BECC 134 Solved Question Paper June 2026 answers every question in IGNOU's term-end paper for Principles of Macroeconomics-II, the 6-credit economics course of the Bachelor of Arts (General) programme. Two complete answers are open below; the remaining 10 are in the full file.
1. What the June 2026 Solved Paper Includes
The June 2026 paper carried 12 questions spread across three sections for 100 marks.
The course picks up where BECC 133 stops. Instead of simple income determination, you now work with the IS and LM curves, aggregate demand and supply, inflation, the Phillips curve and exchange rates. Almost every question asks you to derive or shift a curve, which is exactly where most marks are lost.
Our subject team took the official June 2026 paper and wrote a full answer for each question in the length the paper asks for. The answers were written after studying earlier BECC 134 papers, so the file also tells you which of these 12 questions have come before and in what wording.
On this page you can read two complete answers: Q1 from Section A on the natural rate of unemployment, and Q7 from Section B on demand pull and cost push inflation.
2. Two Answers Solved in Full, Ten Held Back
Two June 2026 questions are answered in full below, one from Section A and one from Section B, so you can judge the depth before you order. Both match the word limits printed on the paper.
The natural rate of unemployment and types of unemployment
Question 1: What is the natural rate of unemployment? Discuss the various types of unemployment. (20)
Introduction. The natural rate of unemployment is the rate of unemployment that exists when the labour market is in long-run equilibrium, so actual output equals potential output and inflation is neither rising nor falling. It is called natural not because it is fixed or desirable, but because it remains even when the economy is at full employment.
Milton Friedman introduced the term in his presidential address to the American Economic Association, delivered in December 1967 and published in the American Economic Review in March 1968. Edmund Phelps reached a similar idea independently at about the same time. Later writers also call it NAIRU, the non-accelerating inflation rate of unemployment.
Features of the natural rate
- It is made up of frictional and structural unemployment; cyclical unemployment is zero at this point.
- It is the level at which the long-run Phillips curve stands vertical, so demand policy cannot hold unemployment below it without inflation speeding up.
- It is not a constant. It changes with labour market institutions such as minimum wages, unemployment benefits, union strength and the quality of job information.
A simple way to see what drives it is the steady-state formula:
u = s / (s + f)
where s is the rate at which workers lose or leave jobs and f is the rate at which job seekers find work. If 1 per cent of workers separate each month and 20 per cent of the unemployed find jobs each month, u = 0.01 / 0.21, or about 4.8 per cent. Faster job finding lowers the natural rate.
Types of unemployment
- Frictional unemployment. The short spell people spend moving between jobs or entering the labour force, such as a graduate looking for a first job. It exists because job information is imperfect and searching takes time. Job portals and employment exchanges reduce it, but some always remains.
- Structural unemployment. This arises when the skills or location of workers do not match the jobs available. Automation, new technology or the decline of an old industry leave workers with skills that are no longer wanted. It lasts longer than frictional unemployment and is tackled through retraining and better labour mobility.
- Cyclical or demand-deficient unemployment. This appears in a recession, when aggregate demand falls and firms cut output and jobs. Keynes stressed this type. It equals the actual rate minus the natural rate, so it is positive in a slump and can turn negative in a boom. Expansionary fiscal and monetary policy can reduce it.
- Seasonal unemployment. Some activities follow the calendar. Farm workers in India often have little work between sowing and harvest, and tourism or sugar mills hire mainly in their peak season. The unemployment repeats every year and is reduced by rural non-farm work and public works programmes.
- Disguised unemployment. Here more people are engaged in a task than it needs, so the marginal product of the extra workers is close to zero. It is common on small family farms in India, where all members appear employed but output would not fall if some left.
Conclusion. Demand policy can remove cyclical unemployment but cannot hold unemployment below the natural rate for long without accelerating inflation. Lowering the natural rate itself needs supply-side measures such as better job matching, training and labour market reform.
Demand pull and cost push inflation
Question 7: Differentiate between demand pull inflation and cost push inflation. (12)
Introduction. Inflation is a sustained rise in the general price level. Economists separate it by its starting point: demand pull inflation begins on the demand side of the economy, while cost push inflation begins on the supply side.
Demand pull inflation occurs when aggregate demand grows faster than the economy's capacity to produce, often described as too much money chasing too few goods. In the AD-AS diagram the AD curve shifts to the right along an upward-sloping AS curve, so the price level and output both rise in the short run.
Cost push inflation occurs when the cost of producing each unit rises, for example through higher wages, costlier raw materials, a rise in oil prices or higher indirect taxes. The AS curve shifts to the left, so prices rise while output and employment fall. When this happens the economy can face stagflation.
| Basis | Demand pull inflation | Cost push inflation |
|---|---|---|
| Starting point | Excess aggregate demand | Rise in per-unit production costs |
| Curve that shifts | AD shifts to the right | AS shifts to the left |
| Effect on output | Output and employment rise in the short run | Output and employment fall |
| Common triggers | Higher government spending, easy credit, rapid growth of money supply | Wage rises, oil and raw material prices, higher indirect taxes |
| Example | Spending financed by borrowing from the central bank | The 1973 oil shock, when crude prices roughly quadrupled |
| Main remedy | Tight monetary and fiscal policy | Supply-side measures and cost control; tight demand policy deepens the output loss |
Diagram to draw: an AD-AS graph with output (Y) on the horizontal axis and the price level (P) on the vertical axis. For demand pull, draw an upward-sloping AS curve and shift AD1 to AD2 rightward, marking the move from E1 to E2 with both P and Y higher. For cost push, draw a fixed AD curve and shift AS1 to AS2 leftward, showing P higher but Y lower.
Conclusion. In practice the two often feed each other. Rising prices lead workers to demand higher wages, and higher wages push costs up further, creating a wage-price spiral. Identifying the starting point matters because the correct policy response is different in each case.
3. Questions Answered Only in the Full File
The remaining 10 questions from the June 2026 paper are listed exactly as printed. Their answers come only with the full file.
Section A (any two, 20 marks each)
Question 2: Describe the Phillips curve. Why is it downward sloping in the short run but vertical in the long run? Explain.
Question 3: Derive the IS curve from equilibrium output in an economy. What are the factors that determine the slope of the IS curve?
Question 4: Discuss the shape of the aggregate supply (AS) curve. What are the factors that lead to a shift in the AS curve?
Section B (any four, 12 marks each)
Question 5: Explain briefly the asset market approach to exchange rate determination.
Question 6: What does an LM curve signify? Discuss the factors that affect its shape.
Question 8: Explain the difference between the Balance of Trade and the Balance of Payments. Do you think that the Balance of Payments always remains balanced? Give reasons for your answer.
Question 9: Discuss the factors that influence the aggregate demand curve.
Question 10: Differentiate between the following. (a) Fixed exchange rate and floating exchange rate (b) Nominal and real exchange rate
Question 11: Discuss the implications of the quantity theory of money.
Section C (any two, 6 marks each)
Question 12: Write short notes on any two of the following.
(a) Purchasing power parity
(b) Adaptive and rational expectations
(c) Stagflation
(d) Marginal efficiency of capital
4. Syllabus by Block and Unit
BECC 134 has 4 blocks and 11 units, moving from IS-LM analysis to AD-AS, then inflation and unemployment, and finally the open economy. Each block builds on the curve tools of the one before it, so a weak Block 1 shows up in every later answer.
The table lists the unit titles from the official course material and the topics within each unit that examiners actually ask about. If you are still reading the units, our BECC 134 Study Material follows the same block order.
| Block | Unit | Topics examiners ask about |
|---|---|---|
| Block 1: IS-LM Analysis | Unit 1: Equilibrium in the Real Sector | Interest rate and investment; derivation of the IS curve; slope and position of the IS curve |
| Block 1: IS-LM Analysis | Unit 2: Equilibrium in the Monetary Sector | Demand for and supply of money; derivation of the LM curve; classical and Keynesian ranges |
| Block 1: IS-LM Analysis | Unit 3: Neoclassical Synthesis | Joint IS-LM equilibrium; adjustment back to equilibrium; fiscal policy, monetary policy and crowding out |
| Block 2: GDP and Price Level in the Short Run and Long Run | Unit 4: Aggregate Demand | AD derived from IS-LM; why AD slopes downward; factors that shift AD |
| Block 2: GDP and Price Level in the Short Run and Long Run | Unit 5: Aggregate Supply | Short, medium and long-run AS; shape of the AS curve; causes of AS shifts |
| Block 2: GDP and Price Level in the Short Run and Long Run | Unit 6: Equilibrium Output and Prices | AD-AS equilibrium; demand and supply shocks; output gap |
| Block 3: Inflation and Unemployment | Unit 7: Inflation: Concept, Types and Measurement | Creeping, galloping and hyperinflation; CPI and WPI; core inflation |
| Block 3: Inflation and Unemployment | Unit 8: Causes and Effects of Inflation | Demand pull and cost push; quantity theory of money; effects on different sections of society |
| Block 3: Inflation and Unemployment | Unit 9: Phillips Curve | Short and long-run Phillips curve; natural rate of unemployment; sacrifice ratio, cold turkey and gradualism |
| Block 4: Balance of Payments and Exchange Rate | Unit 10: Balance of Payments | Current and capital accounts; Balance of Trade versus Balance of Payments; BoP disequilibrium |
| Block 4: Balance of Payments and Exchange Rate | Unit 11: Exchange Rate Determination | Fixed and floating regimes; nominal and real exchange rates; PPP, monetary and asset market approaches |
You can check the block and unit list yourself on the official BECC 134 course page on eGyanKosh.
5. Question Paper Pattern and Marks Split
The paper carries 100 marks in 3 hours: two 20-mark essays, four 12-mark answers and two 6-mark short notes. The same three-section layout appears in every paper from June 2023 to June 2026 that we checked.
| Section | Questions | Attempt | Length | Marks | June 2026 topics |
|---|---|---|---|---|---|
| A | Q1 to Q4 | Any 2 | About 500 words | 2 × 20 = 40 | Unemployment, Phillips curve, IS curve, AS curve |
| B | Q5 to Q11 | Any 4 | About 250 words | 4 × 12 = 48 | Asset market approach, LM curve, inflation types, BoT and BoP, AD factors, exchange rates, quantity theory |
| C | Q12 (a) to (d) | Any 2 short notes | Not printed | 2 × 6 = 12 | PPP, expectations, stagflation, marginal efficiency of capital |
| Total | 12 questions | 8 answers | 3 hours | 100 | All 4 blocks tested |
The paper rewards choice, but only if you can draw. Section A in June 2026 had two curve questions and two theory questions, so a student who is weak on diagrams can still pick Q1 and Q2. You can compare this layout with older sets in our IGNOU Previous Year Question Paper collection.
6. Topics IGNOU Keeps Repeating
Four BECC 134 topics appeared in all five official papers we checked: unemployment, inflation, the LM curve and exchange rate regimes. Five more topics, led by the Phillips curve, appeared in four of the five.
We counted topics across the official IGNOU papers for June 2023, December 2023, June 2024, December 2024 and June 2026. We could not find official copies of the June 2025 and December 2025 papers, so the count is out of five papers, not a full five-year run.
| Topic | Block | Papers where it appeared | Count (of 5) |
|---|---|---|---|
| Natural rate and types of unemployment | Block 3 | Jun 23, Dec 23, Jun 24, Dec 24, Jun 26 | 5 |
| Meaning, types and causes of inflation | Block 3 | Jun 23, Dec 23, Jun 24, Dec 24, Jun 26 | 5 |
| LM curve: derivation, slope, ranges, shifts | Block 1 | Jun 23, Dec 23, Jun 24, Dec 24, Jun 26 | 5 |
| Exchange rate regimes; nominal and real rates | Block 4 | Jun 23, Dec 23, Jun 24, Dec 24, Jun 26 | 5 |
| Phillips curve in the short and long run | Block 3 | Jun 23, Dec 23, Jun 24, Jun 26 | 4 |
| AD curve: derivation, slope and shifts | Block 2 | Jun 23, Dec 23, Jun 24, Jun 26 | 4 |
| AS curve: shape and shifts | Block 2 | Jun 23, Jun 24, Dec 24, Jun 26 | 4 |
| Adaptive and rational expectations | Block 3 | Dec 23, Jun 24, Dec 24, Jun 26 | 4 |
| Asset market or monetary approach to exchange rates | Block 4 | Dec 23, Jun 24, Dec 24, Jun 26 | 4 |
| IS curve: derivation, slope and shifts | Block 1 | Jun 24, Dec 24, Jun 26 | 3 |
| IS-LM equilibrium and adjustment | Block 1 | Jun 23, Dec 23, Jun 24 | 3 |
| Fiscal and monetary policy effects on output and prices | Blocks 1 and 2 | Dec 23, Jun 24, Dec 24 | 3 |
| Balance of Payments and its components | Block 4 | Jun 23, Dec 24, Jun 26 | 3 |
| Stagflation | Block 3 | Jun 23, Jun 24, Jun 26 | 3 |
| Quantity theory of money | Block 3 | Dec 24, Jun 26 | 2 |
| Purchasing power parity | Block 4 | Dec 23, Jun 26 | 2 |
The pattern is clear: Block 3 alone supplies five of the top nine rows. If your revision time is short, the inflation-unemployment block is where it pays most, and it is also where our IGNOU Solved Guess Paper list for economics puts its weight.
June 2026 also brought one topic that did not appear in the other four papers: the marginal efficiency of capital in Section C.
7. How the Answers Are Drafted and Reviewed
Each BECC 134 answer is written to the word length printed on the paper and checked against the official course units before it goes into the file. We do not paste textbook paragraphs; every answer is drafted fresh for the June 2026 wording.
Section A answers follow an essay shape: a one-line definition, the curve or model, the reasoning step by step and a short conclusion. Section B answers are tighter, usually built around one diagram or one comparison. Short notes stay compact so you can finish Section C in about 15 minutes.
Curve questions are where BECC 134 students drop marks, so answers such as Q3 on the IS curve and Q4 on the AS curve explain what goes on each axis and why the curve slopes the way it does.
Every answer is then reviewed against the eGyanKosh units for accuracy and for the terms IGNOU uses in its own material.
8. Solved File Index: All 12 Questions Mapped
BECC 134 is a theory course with no practical record, so instead of a practical file index the table below maps all 12 June 2026 questions to their block and unit.
| Question | Topic | Section and marks | Unit | Where the answer is |
|---|---|---|---|---|
| Q1 | Natural rate and types of unemployment | A, 20 | Block 3, Unit 9 | Sample 1 above |
| Q2 | Short-run and long-run Phillips curve | A, 20 | Block 3, Unit 9 | Full file |
| Q3 | IS curve derivation and slope | A, 20 | Block 1, Unit 1 | Full file |
| Q4 | Shape and shifts of the AS curve | A, 20 | Block 2, Unit 5 | Full file |
| Q5 | Asset market approach to exchange rates | B, 12 | Block 4, Unit 11 | Full file |
| Q6 | Meaning and shape of the LM curve | B, 12 | Block 1, Unit 2 | Full file |
| Q7 | Demand pull versus cost push inflation | B, 12 | Block 3, Unit 8 | Sample 2 above |
| Q8 | Balance of Trade versus Balance of Payments | B, 12 | Block 4, Unit 10 | Full file |
| Q9 | Factors behind the AD curve | B, 12 | Block 2, Unit 4 | Full file |
| Q10 | Exchange rate regimes; nominal and real rates | B, 12 | Block 4, Unit 11 | Full file |
| Q11 | Implications of the quantity theory of money | B, 12 | Block 3, Unit 8 | Full file |
| Q12 | PPP, expectations, stagflation, marginal efficiency of capital | C, 2 × 6 | Blocks 1, 3 and 4 | Full file |
Use it as a checklist while revising: if a unit has no tick in your notes, the matching question is a gap. To see how the same units were tested in other courses of your programme, browse our BAG Question Paper section.
9. Programmes That Study BECC 134
BECC 134 Principles of Macroeconomics-II is a core economics course in IGNOU's Bachelor of Arts (General), BAG, printed on the paper itself. It is the second of a two-course macroeconomics set, following BECC 133 Principles of Macroeconomics-I.
The assignment booklet for BECC 134 is headed for both BAG and BAM, the multidisciplinary BA, so students in either programme sit the same term-end paper. If you are in another economics stream, check your programme guide to confirm which macroeconomics codes are on your course list.
Because the course carries 6 credits, it has three tutor-marked assignments worth 30 per cent of the final result, and the term-end exam carries the other 70 per cent. A strong term-end score therefore decides most of your BECC 134 grade.
10. How to Get the Full Solved Question Paper
Message WhatsApp 9899436384 to get the full BECC 134 Solved Question Paper with answers to all 12 June 2026 questions. That is the 2 answers shown above plus the 10 that appear only in the file.
Write the course code BECC 134 and the session June 2026 in your message. Our team replies with the price, the file format and payment details. Once payment is confirmed, the file is sent to the same WhatsApp number.
The 10 answers you get only in the file include the Phillips curve, the IS and AS curves, the LM curve, the asset market approach, Balance of Trade versus Balance of Payments, the AD curve, exchange rate types, the quantity theory and the Section C short notes.
11. BECC 134 Macroeconomics-II FAQs
These are the questions BECC 134 students ask us most about the June 2026 solved file.
What is in the Solved Question Paper for June 2026?
It contains complete answers to all 12 questions printed in IGNOU's June 2026 term-end paper for BECC 134 Principles of Macroeconomics-II, across Sections A, B and C. The answers follow the word limits printed on the paper, about 500 words for Section A and about 250 words for Section B. Two answers are shown on this page and the other 10 are in the full file.
How do I get the full file on WhatsApp, and how many answers does it contain?
Send a message to WhatsApp 9899436384 with the course code BECC 134 and the session June 2026. Our team replies with the price, the file format and payment details. Once payment is confirmed, you receive the complete file with answers to all 12 questions, which means the 2 samples on this page plus the 10 questions that are answered only in the file.
Which BECC 134 topics repeat most often?
Across the five official papers we checked, June 2023, December 2023, June 2024, December 2024 and June 2026, four topics appeared every time: unemployment and the natural rate, causes and types of inflation, the LM curve and exchange rate regimes. The Phillips curve, the AD curve, the AS curve, expectations and the asset market approach each appeared in four of the five papers.
Is BECC 134 a theory or a practical course?
It is a theory course with no practical or lab record. BECC 134 carries 6 credits, so you submit three tutor-marked assignments worth 30 per cent of the result, and the term-end exam carries the other 70 per cent. For that reason this page gives a solved file index that maps each of the 12 June 2026 questions to its block and unit.
How many questions do I attempt in the term-end paper?
You attempt eight answers in 3 hours for 100 marks. In Section A you answer any two of four questions for 20 marks each. In Section B you answer any four of seven questions for 12 marks each. In Section C you write any two of four short notes for 6 marks each. The June 2026 paper followed this pattern exactly, as did the earlier papers we checked.
Who writes and checks the BECC 134 answers?
The answers are prepared by the Unnati Educations subject team with Prateek Talwar as author. Sheetal Kirola, Academic Head, reviews every answer against the official BECC 134 units on eGyanKosh, checking definitions, curve explanations and the terms IGNOU uses. Each answer is drafted fresh for the June 2026 wording instead of being copied from an older guide or a textbook chapter.
Does the file follow the Principles of Macroeconomics-II syllabus?
Yes. Every answer is tied to one of the course's 4 blocks and 11 units, from IS-LM analysis in Block 1 to exchange rate determination in Block 4. The solved file index on this page shows the block and unit for each of the 12 questions, so you can see which parts of the syllabus the June 2026 paper tested and which units you still need to revise.
Will the solved paper help for the December 2026 exam?
It is written for the June 2026 paper, but it is a strong revision base for December 2026 because BECC 134 repeats its core topics. Unemployment, inflation, the LM curve and exchange rate regimes appeared in all five official papers we checked. Practising these answers alongside your own notes on the remaining units covers most of what IGNOU has asked recently.
12. Who Wrote and Checked the BECC 134 Answers
The BECC 134 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 definition, curve explanation and diagram label against the eGyanKosh units before release.