Macroeconomics Question Paper 2023 Gauhati University BCOM 2nd SEM

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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