LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.A. DEGREE EXAMINATION – ECONOMICS

SECOND SEMESTER – APRIL 2006

                                               EC 2805 – MACRO ECONOMIC THEORY – II

 

 

Date & Time : 21-04-2006/9.00-12.00         Dept. No.                                                       Max. : 100 Marks

 

 

PART – A

Answer any FIVE questions in about 75 words each.       (5 x 4 = 20 Marks)

1. Distinguish between Classical and Keynesian theories.
2. What are the features of capitalism?
3. Write a note on M-C-M’ circuits.
4. What is rate of economic growth?
5. What is real balance?
6. How do you distinguish stable economy from unstable economy?
7. How is Joan Robinson’s growth model different from Keynesian’s growth model?

PART – B

Answer any FOUR questions in about 250 words each.   (4 x 10 = 40 Marks)

8. Explain the analytical framework of Marxian theory.
9. Discuss the profit share and investment-income ratio of Joan Robinson’s model.
10. Explain the three rates of growth equations in the Harrod-Domer model.
11. Explain the Golden rule of accumulation.
12. Explain the behaviour of non-linear saving function of Kaldor’s trade cycle.
13. Explain the Kalechi model with respect to the degree of monopoly in the distribution of income.
14. Explain the two sector growth model of Neo Classical model.

 

PART – C

Answer any TWO questions in about 900 words each.     (2 x 20 = 40 Marks)

15. Examine the Neo-Classical growth models.
16. Examine the Kaldors growth model.
17. Analyse the Samuelson’s Accelerator-Multiplier interaction model.
18. Analyse the Kaldor’s business cycle theory.

 

 

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.A. DEGREE EXAMINATION – ECONOMICS

BC 37

SECOND SEMESTER – APRIL 2008

EC 2805 – MACRO ECONOMIC THEORY – II

 

 

 

Date : 22/04/2008            Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

PART A               (5 X 4 = 20 marks)

 

Answer any FIVE questions in 75 words each.

 

1. State the assumptions of the Ricardian theory of income distribution.
2. State the assumptions of the Hicks theory of the business cycle.
3. Mention the assumptions of the Kaldor model of the trade cycle.
4. What are the assumptions of Joan Robinson’s model of economic growth?
5. What is a rational expectations equilibrium model?
6. State the key propositions of Joan Robinson’s growth model.
7. To achieve equilibrium growth in a two-sector model, what is the required rate of growth of net investment if (a) α = 0.10 and σ = 0.50, (b) α = 0.20 and σ = 0.25 and (c) α = 0.50 and σ = 0.20?

 

                         PART B                (4 X 10 = 40 marks)

Answer any FOUR questions in 250 words each.

 

8. Discuss the life-cycle hypothesis of consumption.
9. Explain the Marxian theory of income distribution.
10. Highlight the key features of Kaldor’s theory of income distribution.
11. Describe a propagation mechanism used in real business cycle theory. Explain briefly how it works.
12. Examine the Feldman model of economic growth.
13. Explain the simple version of the Goodwin model of the trade cycle.
14. In the Solow growth model assume that Y = √ AKL, s = 0.1, δ = 0.03, n = 0.03,

g = 0.04, where Y, A, K and L are the levels of output, technology, capital and labour, respectively, s is the saving rate, δ is the depreciation rate. What are the steady state levels of per capita capital, output and consumption? Is consumption per worker maximized in steady state? What is the saving rate that maximizes consumption in the steady state (s*)?

 

                                                  PART C               (2 X 20 = 40 marks)

Answer any TWO questions in 900 words each. Each question carries TWENTY marks.

 

15. Derive mathematically the nature of relationship between wages, degree of monopoly power and the value of raw materials in the Kalecki theory of income distribution.
16. Critically examine the Harrod-Domar models of economic growth.
17. The random-walk model of output suggests that economic fluctuations are highly persistent and are not due to changes in aggregate demand. Discuss this in the context of the original model and in the light of Pierre Peron’s view, which runs contrary to this statement.
18. What is endogenous growth? How do endogenous growth models differ from the neoclassical models of growth?

 

 

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.A. DEGREE EXAMINATION – ECONOMICS

SECOND SEMESTER – APRIL 2012

EC 2809 – MACRO ECONOMIC THEORY – II

 

 

Date : 19-04-2012             Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

PART A

Answer any FIVE questions in 75 words each. Each question carries FOUR marks:        (5 X 4 = 20)

 

1. Mention the assumptions of the human capital and growth model.
2. Explain the concept of perfect foresight.
3. What is endogenous growth?
4. What is a Research and Development model?
5. State the assumptions of the Hicks theory of the business cycle.
6. Define a constant returns to scale production function using a suitable example.
7. Highlight the major conclusions of the Ramsey-Cass-Koopman’s model.

 

PART B

 

 Answer any FOUR questions in 300 words each. Each question carries TEN marks:   (4 X 10 = 40)

 

1. Examine the implications of a coordination-failure model.
2. Discuss a simple endogenous growth model.
3. How does Goodwin make use of the non-linear accelerator in his model of the trade cycle to prove the persistence of business cycles?
4. How do Nelson and Plosser prove that the GDP growth process follows a random walk, influenced largely by supply shocks rather than demand shocks?
5. Explain the key propositions of the Solow growth model using suitable illustrations.
6. Derive a simple version of a Research and Development Model.
7. Consider the Solow growth model with positive and constant population growth (n > 0) and with positive technological growth (g > 0). Assume now that Y = √AKL, s = 0.1, δ = 0.03, n = 0.03, g = 0.04, where Y, A, K, and L are the levels of output, technology, capital and labor respectively, s is the savings rate, δ is the depreciation rate. What are the steady state levels (per efficiency units) of capital, output, and consumption? Is consumption per worker maximized in steady state? What is the savings rate that maximizes consumption in the steady state (s*)?

 

PART C

 

Answer any TWO questions in 1200 words each. Each question carries TWENTY marks. (2×20=40)

 

1. Explain how Lucas uses the aggregate supply curve to prove that local prices are dependent upon local demand shocks as well as the general level of prices in the economy.
2. Derive mathematically a baseline model of real business cycle theory.
3. Explain how Kaldor’s model of the trade cycle discusses the possibility of multiple points of equilibrium.
4. Demonstrate with the help of the perfect-foresight and rational expectations models that anticipated changes in monetary policy will have no real effects.

 

 

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.A. DEGREE EXAMINATION – ECONOMICS

SECOND SEMESTER – NOVEMBER 2012

EC 2809 – MACRO ECONOMIC THEORY – II

 

 

Date : 06/11/2012            Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

                             PART A              

 

Answer any FIVE questions in 75 words each. Each question carries FOUR marks.          5 X 4 = 20

 

1. State the assumptions of the Kaldor’s model of the trade cycle.
2. State the assumptions of the Diamond model of economic growth.
3. Mention the grounds on which Hicks’ theory of the business cycle is considered superior to Samuelson’s version.
4. What is Seignorage? How does it arise?
5. Mention the key propositions of the rational expectations model.
6. Differentiate between the infinite horizons and the overlapping generations models.
7. Explain the concept of random walk of GDP.

                        

                         PART B               

 

Answer any FOUR questions in 300 words each. Each question carries TEN marks:       4 X 10 = 40

 

1. Examine the implications of a simple R & D model of economic growth.
2. In the Solow growth model, assume positive population growth (n>0) and absence of technological progress (g=0, A=1). Assume that Y = √ K√ L , s = 0.4,

δ = 0.07, n = 0.03, where Y, K and L are output, capital and labour respectively, s

is the savings rate and δ is the depreciation rate. What are the steady-state levels

of capital, output and consumption per worker? Is consumption per worker

maximized in the steady state? What is the savings rate s* that maximizes

consumption in the steady state?

1. Derive the central conclusions of the Diamond model.
2. Why does the rational expectations hypothesis postulate that anticipated changes in monetary policy will have no real effects?
3. Using real business cycle theory, discuss how productivity or supply shocks spread to the rest of the economy through various propagation mechanisms to generate business cycles.
4. How does Pierre Perron prove that both aggregate demand and aggregate supply shocks contribute to business cycle fluctuations?
5. Briefly describe a coordination-failure model.

 

 

 

 

 

 

 

PART C               

                                 

Answer any TWO questions in 1200 words each. Each question carries TWENTY marks:

 2 X 20 = 40

 

 

1. Explain how Goodwin makes use of the non-linear accelerator in his model of the trade cycle to prove the persistence of business cycles.
2. Derive a model of human capital and growth and examine its significance for developing economies.
3. Derive mathematically the Ramsey-Cass-Koopmans model of economic growth and highlight the major conclusions of this model.
4. Show how Hicks makes a significant contribution to the theory of the business

cycle by combining the accelerator-multiplier interaction with the forces of

economic growth.

 

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