LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034  M.A. DEGREE EXAMINATION – ECONOMICS

AN 18

FIRST SEMESTER – NOV 2006

         EC 1807 – MACRO ECONOMICS – I

 

 

Date & Time : 28-10-2006/1.00-4.00           Dept. No.                                                       Max. : 100 Marks

 

 

 

Part – A

 

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

1. What do you mean by macroeconomics?
2. How did the Classical view macroeconomics?
3. What does speculative demand for money mean?
4. Briefly explain the concept of liquidity trap?
5. Why have the Classical assumed a perfectly inelastic supply curve?
6. What do you mean by NAIRU curve?
7. Bring out the basic idea of new Keynesian economics?

 

Part – B

 

Answer any FOUR questions in about 300 words each.            (4 x 10 = 40 marks)

8. Discuss the criticism leveled against the Classical macroeconomics.
9. Explain the Keynesian theory of investment.
10. Explain the model, which includes the government and foreign sector while studying investment demand?
11. Bring out the relevance of rational expectations in macroeconomics.
12. Discuss any one of the theories of inflation.
13. What are the different kinds of inflation?
14. What is real balance effect?

Part – C

 

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

15. Discuss the Keynesian-Classical synthesis by means of the relevant diagrammatical illustration.
16. Explain the Phillips curve with a suitable diagram.
17. Explain the Jorgenson’s theory of investment demand.
18. Discuss the major macroeconomic problem dealt by macroeconomics.

 

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