University of Delhi 2011 M.A Economics winter semester 205- topics in croeconomic theory (admissions of 1999 & onwards) - Question Paper

M.A. / Winter Semester a

ECONOMICS

Course 205 Topics in Macroeconomic Theory (Admissions of 1999 and onwards)

Maximum Marks: 70

(Write your Roll No. on the top immediately on receipt of this question paper.)

Attempt any three of the following questions.

1.    Analyze the effect of a labour-income tax in the unit-elastic version of the Ramsey model (with endogenous labour supply.     23i/3

2.    (a) Derive the aggregate Euler equation in the

Blanchad-Yaari model.

(b) Show that Ricardian Equivalence does not hold in

this model.

3. New Keynesian Macro models promised to deliver micro-foundations of Keynesian economics but have failed in doing so. Discuss this in the context of both the real and the monetary versions of the New

Keynesian model.

P. T. O.

4. In a decentralized version of the Ramsey Model, examine the consequences of costly search for both workers (with strictly ccfcncave utility functions) and firms (with a constant-jeturns-to-scale technology). (You should derive the dynamic equations and analyze the steady state.)    I    23i/3

200

Attachment: university-of-delhi-2011-m-a-economics-35491-1.pdf

Earning:   Approval pending.