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Posted Date: 13 Jun 2009 Posted By: Papori Gogoi Member Level: Gold
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2007 Gauhati University M.A Economics Economics Dept., Previous Examination, 2007, Second Paper Question paper
2007
ECONOMICS
SECOND PAPER
(Macroeconomic Theory)
Full Marks: 80
Time : 3 hours
The figures in the margin indicate full marks for the questions
1. Answer the following questions using not more than 50 words each: 2×4=8
a) What do you mean by National income at constant prices?
b) Define underemployment equilibrium.
c) Distinguish between average propensity to consume and marginal propensity to
consume.
d) What is Inside money?
2. Answer any four of the following questions using not more than 150 words each:
6×4=24
a) What are the different components of National income? Establish the
relationship among them.
b) Define the IS curve. What does the equality between IS and LM curve signify?
What happens when the interest rate rises?
c) What is MEI? How does it affect investment decisions?
d) What is H in the H-theory of money supply? What are its determinants?
e) State and explain the Natural Rate Hypothesis.
3. Answer any three of the following questions using not more than 750 words each
16×3=48
a) Discuss the various methods measuring National income.
b) Discuss the theory of involuntary unemployment as proposed by Patinkin.
16
c) What is permanent income? What is its role in determining consumption
behaviour? Discuss critically. 2+14
d) State and explain the Portfolio Diversification approach to the theory of Demand
for money.
e) Explain the lures and dangers in exchange market intervention when exchange
rates are flexible. Do you think such intervention is a good idea?
12+4
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