M.A. (Semester III) Examination, 2017
ECONOMICS (PAPER III)
MACRO ECONOMIC ANALYSIS
Day Date: Thursday, 04-05-2017 Max. Marks: 50
Time: 10.30 AM to 12.30 PM
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Q.1 Select the appropriate word 10
Marshall's equation is
M KR M KY Y KM M KT
In case of liquidity trap, the demand for money is
Perfectly elastic Perfectly inelastic
Relative elastic Unitary elastic
in this equation stands for
Velocity of money Quantity of money
Total transaction None of these
The concept of multiplier is firstly used by
J. B. Say J. M. Keynes R. F. Kahn Dr. Marshall
National Income means value of goods and services product in
a year.
Money Social Political None of these
Transactions approach in applicable only in period.
Long Short Medium None of these
is known as narrow money.
M1 M2 M3 M4
IS-LM Model introduced to
Hicks Hanson Keynes Pigou Marshall
Investment function shows the relationship between Investment and
MEC is
Inverse Proportional
Equi-Proportional None of these
10) Who emphasized that demand for money is generated due to the
function medium of exchange?
Classical Neo-classical
Monetraists None of these
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SLR-P 171
Q.2 Write short answers to the following: [Any Four] 08
What is the equation of multiplier effect?
What is the high-powered money?
Define consumption function.
What is meant by velocity of money?
What is the supply of money?
Define R.B.I.s concept of M2 of money supply.
Q.3 Write short notes: (Any Four) 12
Marginal Efficiency of Capital
Keynes's Psychological law of consumption
Investment function
Marginal propensity to consume
Circular flow of national income in four sector economy
Absolute income hypothesis
Q.4 Explain the methods of Social accounting of national income. 10
OR
Explain the Keynesian theory of rate of interest.
Q.5 Critically examine the Cash Balance Approach. 10