University of Delhi 2005-2nd Year B.A Economics Macro- Analysis and Policy Regular Year : IInd Yea - Question Paper

part ‘A’

Q. 1. Distinguish ranging from aggregate demand and effective demand. discuss the relationship ranging from aggregate demand and effective demand and level of full employment. 5, 10

Q. 2. discuss the concept of investment multiplier and show its relationship with MPS.
obtain out the value of multiplier and increase in the level of income if MPS is .5 and increase in investment is Rs. two lakhs.

Q. 3. describe Money. elaborate its functions ? Which are the different components of money supply used in India by RBI ?

Q. 4. Distinguish ranging from demand-pull, cost-push inflation.
What is the effect of inflation on various parts of the society ?

Q. 5. Write short notes :
(a) Concept of inflationary gap;
(b) Marginal efficiency of capital;

part ‘B’

Q. 6. define the balance sheet of a commercial bank. How do the commercial banks reconcile the contradictory aims of liquidity and profitability of their assets.

Q. 7. How do the commercial banks create credit ? elaborate their limitations ? ans :
Q. 8. Differentiate ranging from direct and indirect taxes. Why is the share of direct taxes less than that of indirect taxes in a developing country ?

Q. 9. Fiscal and monetary policies play a complementary role in a developing economy. explain.

Q. 10. Write short notes:
(a) Functions of a central bank;
(b) Increasing importance of public expenditure.

Earning:   Approval pending.