University of Delhi 2007 B.Sc Physics B.Com X.:-MACRO-ECONOMICS - Question Paper

B.Com./II/NS
Paper X.:-MACRO-ECONOMICS

Time: three Hours
Maximum Marks: 75

Attempt any 5 ques..
All ques. carry equal marks

1a)Explain in brief the method of measurement of national income. Mention the difficulties involved in the use of product method of measurement of national income.9marks
b)Is increase in national income an, indicator of increase in social welfare? Comment. 6marks

2a)Differentiate ranging from linear and non-linear consumption function and discuss the determinants
of propensity to consume.8 marks
b)Define investment multiplier and illustrate briefly the working of the,multiplier.7marks

3a)Calculate the equilibrium level of income from the subsequent data . 5marks
Consumption C = 40+6Yd,Yd disposable income.
Investment = 80 crores
Government expenditures = 40 crores
Taxes = 40 crores.
b)What is net export function ? discuss the factors responsible for shift in net export function.10

4a)What is aggregate demand ? How is an aggregate demand curve derived ? 7marks
(b) Analyze the impact of aggregate demand shocks on 'equilibrium GDP and price level in short
run. 8marks

5.How do commercial banks create credit in multiple, banking system? Can commercial banks create unlimited amount of credit ? 15marks

6a)Derive IS curve from product market equilibrium.Explain how shift in IS curve affects rate of interest and GDP.8marks
b)Using IS-LM model,explain how shift in LM influences rate of interest and GDP .7marks

7.Distinguish ranging from balance of trade and balance of payments.Analyze the causes of adverse balance of payments.how is it corrected?

8.Write short notes on any two
a)Inflationary gap
b)functions of money
c)Aggregate supply shocks
d)leakages of multiplier

Earning:   Approval pending.