LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.A. DEGREE EXAMINATION – ECONOMICS
FIFTH SEMESTER – November 2008
EC 5504 / EC 4500 – MACRO ECONOMICS – II
Date : 13-11-08 Dept. No. Max. : 100 Marks
Time : 9:00 – 12:00
ANSWER ANY FIVE QUESTIONS IN ABOUT 75 WORDS EACH
- Define consumption function
- What is a trade cycle?
- Define inflation
- Explain the term ‘growth’
- Distinguish between monetary policy and fiscal policy
- What are innovations?
- Define multiplier
ANSWER ANY FOUR QUESTIONS IN ABOUT 250 WORDS EACH
(4×10 = 40 MARKS)
- Explain absolute income hypothesis
- Briefly explain multiplier- accelerator interaction model by Samuelson and Hicks
- Discuss the various types of inflation
- Explain Kaldor’s model of income distribution through differential savings.
- Explain Hawtrey’s theory of trade cycle
- What is inflationary gap? What measures need to be taken to close the gap.
- Mention the characteristics of a trade cycle and explain the different phases of
a trade cycle.
ANSWER ANY TWO QUESTIONS IN ABOUT 900 WORDS EACH
( 2×20 = 40 MARKS)
- Explain Kaldor’s theory of trade cycle.
- Discuss the causes and effects of inflation. What measures need to be taken to control inflation?
- Examine the Harrod – Domar model of growth.
What is the role of monetary and fiscal policy in maintaining economic growth with economic stability.