Gauhati University 2007 B.A Economics Macroeconomic Theory - Question Paper

2007
ECONOMICS
SECOND PAPER

(Macroeconomic Theory)
Full Marks: 80
Time : three hours

The figures in the margin indicate full marks for the ques.
1. ans the subsequent ques. using not more than 50 words each: 2×4=8
a) What do you mean by National income at constant prices?
b) describe underemployment equilibrium.
c) Distinguish ranging from avg. propensity to consume and marginal propensity to
consume.
d) What is Inside money?
2. ans any 4 of the subsequent ques. using not more than 150 words each:
6×4=24
a) elaborate the various components of National income? Establish the
relationship among them.
b) describe the IS curve. What does the equality ranging from IS and LM curve signify?
What happens when the interest rate rises?
c) What is MEI? How does it affect investment decisions?
d) What is H in the H-theory of money supply? elaborate its determinants?
e) State and discuss the Natural Rate Hypothesis.
3. ans any 3 of the subsequent ques. using not more than 750 words every
16×3=48
a) explain the different methods measuring National income.
b) explain the theory of involuntary unemployment as proposed by Patinkin.
16
c) What is permanent income? What is its role in determining consumption
behaviour? explain critically. 2+14
d) State and discuss the Portfolio Diversification approach to the theory of Demand
for money.
e) discuss the lures and dangers in exchange market intervention when exchange
rates are flexible. Do you think such intervention is a good idea?
12+4

Earning:   Approval pending.