University of Delhi 2006-2nd Year B.A Economics Macro Analysis And Policy Regular -II Year : - Question Paper

part ‘A’

Q. 1. What is a consumption function ? discuss the determination of equilibrium level of national income using consumption-investment approach. five 10

Q. 2. What is marginal efficiency of capital ? How does marginal efficiency of capital (MEC) determine the level of investment ?

Q. 3. describe inflation and deflation. The effect of inflation on the various parts of society are not identical. explain. 8, 7
:
Q. 4. Critically examine the volume Theory of Money as provided by Irving Fisher.

Q. 5. (a) Comment on the application of Keynesian Theory to a developing country.
(b) Complete the table:
Image no.1

part ‘B’

Q. 6. elaborate the functions of a commercial bank ? How do banks create credit ?

Q. 7. elaborate the causes of growth of public expenditure in a developing country ? explain its effects on production and distribution. 9,6

Q. 8. (a) discuss the merits and demerits of direct and indirect taxes.
(b) elaborate the characteristics of a good tax system 9, 6

Q. 9. elaborate the main objectives of fiscal policy ? elaborate the issues faced in a developing country in achieving those objectives? 10, 5

Q. 10. Write short notes : 8, 7
(a) Functions of Reserve Bank of India;
(b) Recommendations of 11th Finance Commission

Earning:   Approval pending.