(Pages 1500
P.T.O.
MAR IVANIOS COLLEGE (AUTONOMOUS)
THIRUVANANTHAPURAM
Reg. No. :.………………… Name :.………………….
Fifth Semester B.A. Degree Examination, November 2016
First Degree Programme under CBCSS
Core Course: Economics VII
AUEC542: Macro Economics II
Time: 3 Hours Max. Marks: 80
SECTION A
Answer ALL questions in one or two sentences.
1. Ratchet effect.
2. Wage rigidity.
3. Monetarism 4. Open market operations.
5. Employment Multiplier.
6. Define Deflation.
7. Monetary Policy.
8. Define NAIRU.
9. Marginal Efficiency of Capital.
10. Marginal Propensity to consume.
(10 × 1 10 Marks)
SECTION B
Answer any EIGHT questions, each in a short paragraph not exceeding 50 words.
11. What is investment and discuss the factors that stimulate investment
12. Distinguish Aggregate demand curve and Aggregate supply curve.
13. What is a business cycle Identify its different types.
14. What is Adaptive Expectations Hypothesis
15. Cost Push inflation.
16. What is money Discuss its features.
1500
2
17. Absolute Income hypothesis.
18. Principle of Acceleration.
19. Explain the Psychological Law of Consumption.
20. Liquidity Trap.
21. Pigou effect.
22. Fisher's Quantity Theory of Money.
× 2 16 Marks)
SECTION C
Answer any SIX questions, each in a paragraph not exceeding 120 words.
23. Explain how does Samuelson's Acceleration and Multiplier interaction generates trade cycle
24. Define inflation and list out the costs of Inflation.
25. What is money supply What are its components
26. Explain Crowding out effect. What determines the magnitude of the crowding out effect
27. Define Stagflation and its relevance in Macroeconomic analysis.
28. Define natural rate of unemployment. Why the natural rate of unemployment differ across countries
29. What is fiscal policy and what are the main instruments of fiscal policy
30. Discuss the short run Phillips curve and identify its main implications.
31. Discuss the various factors influencing Consumption other than Income.
× 4 24 Marks)
SECTION D
Answer any TWO questions, not exceeding four pages.
32. Introducing the expected rate of inflation as an additional variable, the excess demand which determines the rate of change of money wages, implies that instead of one unique Phillips curve, there will be a family of Phillips curve. State your opinion.
33. Explain Hicks's model of trade cycle.
34. Explain Life cycle Hypothesis. On what grounds is Life cycle theory Criticized
35. What is Investment multiplier and discuss its importance List out the leakages and point out the limitations.
× 15 30 Marks)