M.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
First Semester
Economics
Paper II MACRO ECONOMIC ANALYSIS — I
2 10312-AA
Time 3 Hours Max. Marks 70
SECTION — A
Answer any FIVE questions. 6 30 Marks)
Each question carries 6 marks.
1. Nature, scope and importance of Macro Economics.
2. Concepts of Real income and Disposable income.
3. Outline the Classical theory of Employment.
4. Interaction between Multiplier and Accelerator.
5. Write about the concept of Consumption Function.
6. Importance of Absolute Income Hypothesis.
7. Nature of Goods market and Money market.
8. Issues relating to Supply Side Economics.
SECTION — B
Answer ALL questions. 10 40 Marks)
Each question carries 10 marks.
9. Examine the basic issues relating to Circular flow of Income and Expenditure
in the three sector closed economy.
Or
Explain about the different problems underlying the measurement of
National Income in the context of Developing Countries.

10. Write about the differences between the concepts of Marginal Efficiency of
Capital and Marginal Efficiency of Investment.
Or
Briefly outline the differences between the Classical and Keynesian theories
of Employment.
11. Critically evaluate the Relative Income Hypothesis and Life Cycle
Hypothesis.
Or
Discuss about the relative importance of the Permanent Income Hypothesis.
12. Outline the significance of Simultaneous Equilibrium of Goods and Money
markets.
Or
Analyze the Relative Effectiveness of Monetary and Fiscal Policies.