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Punjab University 2008 B.A Economics - : A, : Part - II - Question Paper

Tuesday, 07 May 2013 02:10Web

(Macro Economics)

B.A. 2nd Year

Time Allowed: 3 Hours Maximum Marks : 90

Note: (i) Attempt 5 ques. in all, selecting atleast 1 from every
Section A,B,C and D. ques. No. one is compulsory.

1. Answer any 9 of the following:

(a) Define the concept of Macro Economics.

(b) What is full employment ?

(c) Output is always equal to Income.How ?

(d) Define Marginal Propensity to consume.

(e) What is meant by Investment in Economics ?

(f) Define Prospective Yield.

(g) Derive the formula showing the relationship ranging from MPC and the
value of multiplier.

(h) What do you mean by transaction motive of demand for money ?

(i) Define near money.

(j) What is money market ?

(k) What do you mean by cash reserve ratio ?

(l) What is inflationary gap ?[Marks 18]


2. Describe Keynesian Theory of income and employment.[Marks 18]

3. "Supply creates its own demand."Critically examine the statement.[Marks 18]


4. Discuss Keynes Psychological legal regulations of consumption. elaborate its
implications ?[Marks 18]

5. What is marginal efficiency of capital ? discuss the factors on which marginal
efficiency of capital depends.[Marks 18]


6. "Money is good servant but a bad master."Explain fully this statement.[Marks 18]

7. Discuss the process of credit creation by commercial blanks.[Marks 18]


8. Discuss the causes of inflation. provide measures to accurate it.[Marks 18]

9. What is monetary policy ? explain the role of monetary policy to bring economic
stability in the economy.[Marks 18]

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