LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
DEGREE EXAMINATION –ECONOMICS
FOURTH SEMESTER – APRIL 2007
EC 4500 – MACRO ECONOMIC THEORY
Date & Time: 21/04/2007 / 9:00 – 12:00 Dept. No. Max. : 100 Marks
Part – A 5 * 4 = 20
Answer any FIVE Questions with not exceeding 75 words each.
- Define Macroeconomics.
- Distinguish between static and dynamic analysis.
- What do you mean by effective demand?
- What is natural rate of unemployment?
- Define capital-output ratio.
- What are the different phases of trade cycle?
- What is rate of economic growth and how does it differ from equilibrium growth rate?
Part – B 4 * 10 = 40
Answer any FOUR Questions with not exceeding 150 words each.
- Explain the various methods of estimating national income? Point out its imperfections.
- Explain the circular flow of economic activity in a simple economy.
- Do you agree that wage-cut will solve the unemployment problem?
- Explain the factors determining consumption expenditure in the economy.
- Explain the concepts of MEC and identify the factors affecting it.
- Describe and distinguish between Demand-pull and Cost-push inflation.
- Explain the Hick’s theory of trade cycle.
Part – C 2 * 20 = 40
Answer any TWO Questions with not exceeding 300 words each.
- State and criticize Say’s Law of Market and bring out its main implications.
- Critically examine the General Equilibrium Model.
- Analyse the Keynesian theory of liquidity preference.
- Examine the Kaldor’s growth model and why does it often referred as a basic Keynesian model.
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