Punjab University 2010-2nd Year B.A Economics- : A , :- , - 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) Assumptions of Classical Theory of Employment.

(b) Meaning of Full Employment as per Classical economists.

(c) Distinguish ranging from Induced and Autonomous investment.

(d) If value of MPC=0.75, obtain the value of Multiplier.

(e) What are the motives behind Liquidity Preference ?

(f) Differentiate ranging from Money Market and Capital Market.

(g) Explain Inflationary Gap.

(h) Who gains from inflation ?

(i) What is suppressed inflation ?

(j) Differentiate ranging from Comparative Static and Dynamic Multiplier concepts.

(k) Define Money.

(l) Define Marginal Efficiency of Capital(MEC).[Marks 2x9=18]

SECTION-A

2. Define Macro Economics. What is the importance and limitations of
Macro economics ?[Marks 18]

3. Explain Keynesian Theory of Employment.[Marks 18]

SECTION-B

4. Explain the meaning of 'Propensity to Consume.'Discuss the factors
which determine the propensity to consume.[Marks 18]

5. "Multiplier is a 2 edged sword.It will cut for you or against you."
Explain the statement.[Marks 18]

SECTION-C

6. Critically examine Fisher's volume Theory of Money.[Marks 18]

7. Critically examine Keynes's Theory of Money and Prices.[Marks 18]

SECTION-D

8. Explain "Demand Pull" and "Cost Push" inflation. Suggest measures to
control inflation.[Marks 18]

9. Explain the meaning and objectives of Monetary Policy. explain various
instruments of Monetary Policy.[Marks 18]

Earning:   Approval pending.