M.A. DEGREE EXAMINATION, APRIL 2017
Second Semester
Economics
MACRO ECONOMICS — II
(2016 onwards)
Time 3 Hours Maximum 75 Marks
Part A (10 x 2 20)
Answer all questions.
All questions carry equal marks.
1. Define the concept of Multiplier.
2. What is Crowding-out Effect?
3. Explain the concept of Capital-Output Ratio.
4. Write any two effects of Population Growth.
5. What do you mean by Budget Deficit?
6. Write any two characteristics of Good Tax System.
7. What is Phillips Curve?
8. Define Inflation.
9. Write any two reasons for the shift in the IS curve.
10. What does LM denote?
Sub. Code
455202
RW-120
2
sp3
Part B x 5 25)
Answer all questions choosing either or
All questions carry equal marks.
11. Explain Keynes's Theory of Business Cycle.
Or
Describe the interaction between Multiplier and
Accelerator.
12. Discuss the impact of increase in the Saving Rate.
Or
Elaborate the concept of investment in Human
Capital.
13. Explain the characteristics of a Good Tax system.
Or
Elucidate the concept of Incidence of Tax.
14. Describe the Monetarist views on Inflation.
Or
Explain the economic effects of Inflation.
15. Examine the shifts in the LM schedule and show it
diagrammatically.
Or
Given the following data about the monetary sector
of the economy
Md 0.4 Y 80i
Ms 1200 cr.
Derive the equations for IS curve and represent it
graphically.
RW-120
3
sp3
Part C 10 30)
Answer any three questions.
All questions carry equal marks.
16. Discuss the role of Fiscal Policy to control Inflation.
17. Explain the effect of growth of population on
development.
18. Examine the effects of Public Expenditure on Production
and Distribution.
19. Explain the various types of Inflation. Also explain the
monetary measures to control Inflation.
20. Examine the policy effectiveness and slope of IS schedule.
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