Macroeconomics Question Paper 2023
Gauhati University BCOM 2nd SEM
COMMERCE (Honours Generic)
Paper: COM-HG-2016
Full Marks: 80
Time: 3 hours
The figures in the margin indicate full marks for the questions.
1. Answer the following questions as
directed: 1x10=10
(a) What is comparative
static economic analysis?
(b) Define effective
demand.
(c) What is meant by aggregate
supply?
(d) Name the author of the
book, The General Theory of Employment, Interest and Money.
(e) What is the shape of
long-run aggregate supply curve?
(f) What does a vertical IS
curve mean?
(g) State the condition of
equilibrium in the goods market.
(h) What is the most common
method of measuring inflation?
(i) The value of money and
the price level are related inversely/directly. (Choose the correct answer)
(j) What is meant by
marginal propensity to consume?
2. Answer the following questions: 2x5=10
(a) Why does the aggregate
demand curve slope downward?
(b) State two limitations
of the IS-LM model.
(c) What is social cost of
inflation?
(d) Distinguish between
fixed exchange rate and flexible exchange rate.
(e) Distinguish between
induced investment and autonomous investment.
3. Answer any four of the following questions: 5x4=20
(a) Explain the national
income identity using circular flow of income in a three sector economy.
(b) How is the LM curve
affected by the change in the supply of money? Explain with a diagram.
(c) What is marginal
efficiency of capital? State the determinants of marginal efficiency of
capital.
(d) Explain the trade-off
between inflation and unemployment.
(e) Explain the cost-push
theory of inflation.
(f) Briefly explain the
arguments in favour of flexible exchange rate system.
4. Answer the following questions: 10x4=40
(a) Discuss the
determination of equilibrium rate of interest and level of income with the help
of IS-LM curve analysis.
Or
Discuss how income and the
interest rate are affected by an increase in government spending and an
increase in taxes, using the IS-LM curve model. 5+5=10
(b) Explain the nature of
demand-pull inflation. What measures would you suggest to control such inflation? 5+5=10
Or
Discuss the effects of
inflation on production and distribution. 5+5=10
(c) Explain Mundell-Fleming
model with flexible exchange rates.
Or
Discuss the derivation of
the IS curve from the goods market in an open economy with suitable diagram.
(d) What is meant by
investment function? Discuss the factors which affect the level of investment. 2+8=10
Or
Explain Keynesian theory
of demand for money. Write how it is superior to the traditional quantity
theory of money. 7+3=10
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