Punjab University 2009 B.A Economics - : A, : Part - II - Question Paper

ECONOMICS- Paper : A
(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) What is Laissez Faire Policy ?

(b) What do you mean by interest rate flexibility ?

(c) Define avg. Propensity to Consume.

(d) Explain Autonomous Investment.

(e) What is Multiplier ?

(f) Give the meaning of Liquidity Trap.

(g) Give primary functions of Money.

(h) What is Limited Legal Tender Money ?

(i) Define Trade Cycle ?

(j) Define Capital Market.

(k) Do banks really create credit ?

(l) What do you mean by Stagflation ?[Marks 2x9=18]

SECTION-A

2. Define Effective Demand. discuss how does it determine the level of
employment ?[Marks 18]

3. Explain Say's legal regulations of Markets and bring out its implications.[Marks 18]

SECTION-B

4. What is Consumption Function ? discuss the determinants of consumption
Function.[Marks 18]

5. What do you mean by Inducement to Invest ? On what factors investment
decisions depend ?[Marks 18]

SECTION-C

6. Critically examine Fisher's quatity theory of Money.[Marks 18]

7. Explain different methods of Credit Control adopted by Central
Bank.[Marks 18]

SECTION-D

8. Define Keynesian view of Inflation.Explain Demand Pull and Cost
Push theory of Inflation.[Marks 18]

9. What is Fiscal Policy ? explain the role of Fiscal Policy as a
Stabilisation Policy.[Marks 18]

Earning:   Approval pending.