M.A.(Economics) (Semester III) (CSBS) Examination, 2017
MACRO ECONOMIC ANALYSIS (Paper II)
Day Date: Thursday, 20-04-2017 Max. Marks: 70
Time: 02.30 PM to 05.00 PM
Instructions: All questions are compulsory.
Right side digit indicates marks.
Q.1 mark the correct answer: 14
When the net value of final goods and services evaluated at market
prices a given year is known as
GDP at Market Price ii) NNP at Market Price
iii) National Income at Market Price iv) GNP at Market Price
Find the correct statement.
GDP at factor cost=Net value added+ Depreciation
ii) GDP at factor cost=Net value added- Depreciation
iii) GDP at factor cost=Net value added- Depreciation+ Factor
Cost
iv) GDP at factor cost=Net value added- Depreciation+ Factor Cost
are the components of Social Accounting Method.
Production Account ii) Capital Account
iii) Consumption Account iv) All of the above
NDP is
GDP at factor cost- Depreciation
ii) GDP at factor cost+ Depreciation
iii) GDP at factor cost+ National Income
iv) GDP at factor cost- National Income
Find the correct statement.
According to Kenys Transaction demand for money is interest
elastic.
ii) According to Baumol demand for money is interest inelastic.
iii) According to Tobin demand for money is income elastic.
iv) None of the above.
The IS-Lm curve is mainly dealt with
Income, Rate of Interest and Output
ii) Saving, investment and Output
iii) Saving, Investment and Rate of Interest
iv) None of the above
The Liquidity trap indicates the relation between demand for money
and rate of interest is
Positive ii) Horizontal iii) Negative iv) Vertical
According to Fisher demand for money is depend on
Price *Total goods and services
ii) Price *Total services
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iii) Price *Total goods
iv) None of the above
People who invest either their whole money income or kept idle are
known as
Risk Averter ii) Plungers iii) Speculators iv) Risk Lovers
10) The Natural Rate of Unemployment indicates the equilibrium
between
Investment and Saving
ii) Actual inflation and expected inflation rate
iii) Income and Expenditure
iv) Aggregate demand and Aggregate Supply
11) According to Samuelson when and then there is
Cycle less path ii) Damped cycle path
iii) Explosive path iv) Constant cycle path
12) Marginal Efficiency of Capital is the function of
Supply price and Expected Returns from the Capital
ii) Supply price and Rate of Interest
iii) Expected Returns from Capital and Rate of Interest
iv) Expected Returns from Capital and Rate Of Investment
13) The Long run theory of Philips curve states that the relation
between inflation and unemployment is
Negative ii) Positive iii) Vertical iv) None of the above
14) When the rate of inflation is above the it is called as
Creeping Inflation ii) Walking Inflation
iii) Running Inflation iv) Galloping inflation
Q.2 Write short notes (any four) 12
Net National Income at market price
Disposable Income
Marginal Propensity to Consume
Precautionary Demand for Money
Creeping inflation
Q. 3 Write short answer (any four) 16
What is mean by GDP at factor cost?
Explain in brief Lonable fund theory of interest.
Explain the concept of walking inflation.
What is the Average Propensity to Consume?
What is Trough?
Q.4 Answer any two questions. 14
Explain the methods of measuring national income.
Discuss the Friedmans theory Restatement of Quantity Theory of
Money.
Explain the Sumuelson's theory of Business Cycle.
Q.5 Explain within the IS-LM curve models the effect of monetary and fiscal
policies when prices are flexible and Wages are fixed.
14
OR
Explain the Demand Pull and Cost Pull theory of Inflation.