LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
M.A. DEGREE EXAMINATION – ECONOMICS
FIRST SEMESTER – NOVEMBER 2010
EC 1807 – MACRO ECONOMIC THEORY – I
Date : 13-11-10 Dept. No. Max. : 100 Marks
Time : 1:00 – 4:00
Part –A
Answer any FIVE questions in about 75 words each. (5 x 4 = 20 marks)
- Distinguish between new-classical and neo-classical economics.
- What are the factors affecting Keynesian consumption function?
- Differentiate between autonomous and induced investment.
- Mention the acceleration theory of investment.
- What do you mean by Lucas critique?
- Write a short note on NAIRU curve.
- What are the theories concerning real wage rigidity?
Part –B
Answer any FOUR questions in about 300 words each. (4 x 10 = 40 marks)
- Analyze the effect of a change in money supply in the classical case.
- Discuss the policy implications of New Keynesian economics.
- Explain the Financial theory of investment.
- Derive the equation of Phillips curve.
- Diagrammatically explain mixed inflation.
- Briefly explain the perfect – foresight model.
- Discuss the demerits of the macro – disequilibrium analysis.
Part – C
Answer any TWO questions in about 900 words each. (2 x 20 = 40 marks)
- Critically analyze Keynesian consumption function.
- Elaborate the disequilibrium macro model.
- Explain in detail the Rational expectation model.
- Critically examine the contents of new – Keynesian model.