Guru Gobind Singh Indraprastha Vishwavidyalaya 2012 B.B.A Business economics-2 - Question Paper
MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES
BBA-Gen. and BBA (B&D : 2nd Semester Second Internals - April 2012 Business Economics II
Time: 2 Hours Max. Marks: 40
Attempt all questions. All questions carry equal marks.
* CJJ'fWhat are the possible withdrawls and injections in an economy. Suppose a country adopts a deficit budgetary policy. How does it affect the size of the circular flow of income and expenditureT 5+5
i OR
Distinguish between microeconomics and macroeconomics. Why is the study of macroeconomic theory important for finding solutions to macroeconomic problems related to business decision making? 4+6
/
Differentiate between classical and Keynesians theory of employment. How Keynesian theory ijrn improvement on the Classical theory of employment. Also elucidate, why Keynesian approach is termed as a short-term approach? 4+4+2
OR
> What is balanced-budget multiplier. Assuming a theoretical model of an economy, prove that the balanced budget multiplier is always equal to unity. 5+5
What is Keynesians approach to demand for money? Explain the Keynesian theory of interest rate determination. 5+5
OR
Define Fiscal policy. Discuss its scope in an economy like India. How Fiscal policy can control inflation? I) 2+3+5'
) What is the purpose of IS-LM model? Explain the determinatiorrof general equilibrium in an economy by applying the IS and LM curves in the two sector moael. 5+5
s OR .
Explain any two of the following: 2x5
(a) Psychological law of consumption.
(b) MEC i
(c) Quantity theory of money :
(d) Measures of money supply in India
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