M.A. DEGREE EXAMINATION, NOVEMBER 2017
Second Semester
Economics
MACRO ECONOMICS — II
(CBCS 2014 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 X 2 20)
Answer all questions.
1. What are the components of money supply?
2. What is outside money?
3. What is meant by liquidity trap?
4. Who are the chief tenets of Cambridge equation?
5. Give the meaning of inflation.
6. What is meant by mark up inflation?
7. Define monetary policy.
8. What is meant by external balance?
9. What are operational lags?
10. What are adaptive expectations?
Sub. Code
4MEC2C2
AFF-4781
2
wk12
Part B X 5 25)
Answer all questions, choosing either or
11. Enumerate the factors that bring about changes in
money supply.
Or
How can money supply be controlled?
12. What are the objections raised against Fisher's
equation of exchange?
Or
Make a critical appraisal of Patinkin's view on
prices and money.
13. Explain the concept of inflationary gap.
Or
Illustrate the modifications made upon Phillip's
curve.
14. Describe the variants of income policy.
Or
Explain how internal unemployment and BoP
deficit can be avoided under flexible exchange rate
system.
15. Write a short note on Laffer curve analysis.
Or
How do automatic stabilisers affect the economy?
AFF-4781
3
wk12
Part C X 10 30)
Answer any three questions.
16. How is the money multiplier derived?
17. In what respect is Friedman's approach superior to
traditional quantity theory of money?
18. "Inflation is a monetary Phenomenon" Elaborate.
19. Explain the Neo-Keynesian approach to income policy.
20. "The essence of supply side economics in incentives"
Elucidate this statement.
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