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Posted Date: 01 Jul 2011      Posted By:: lokesh    Member Level: Silver  Points: 5 (Rs. 1)

2010 General Economics-Paper : A ,Course :- B.A. Second Year, Punjab University Question paper

Course: B.A   University/board: Punjab University


(Macro Economics)

B.A. Second Year

Time Allowed: Three Hours Maximum Marks : 90

Note: (i) Attempt five questions in all, selecting atleast one from each

Section A,B,C and D. Question No. 1 is compulsory.

1. Answer any nine of the following:

(a) Assumptions of Classical Theory of Employment.

(b) Meaning of Full Employment as per Classical economists.

(c) Distinguish between Induced and Autonomous investment.

(d) If value of MPC=0.75, find the value of Multiplier.

(e) What are the motives behind Liquidity Preference ?

(f) Differentiate between Money Market and Capital Market.

(g) Explain Inflationary Gap.

(h) Who gains from inflation ?

(i) What is suppressed inflation ?

(j) Differentiate between Comparative Static and Dynamic Multiplier concepts.

(k) Define Money.

(l) Define Marginal Efficiency of Capital(MEC).[Marks 2x9=18]


2. Define Macro Economics. What is the importance and limitations of
Macro economics ?[Marks 18]

3. Explain Keynesian Theory of Employment.[Marks 18]


4. Explain the meaning of 'Propensity to Consume.'Discuss the factors
which determine the propensity to consume.[Marks 18]

5. "Multiplier is a two edged sword.It will cut for you or against you."
Explain the statement.[Marks 18]


6. Critically examine Fisher's Quantity Theory of Money.[Marks 18]

7. Critically examine Keynes's Theory of Money and Prices.[Marks 18]


8. Explain "Demand Pull" and "Cost Push" inflation. Suggest measures to
control inflation.[Marks 18]

9. Explain the meaning and objectives of Monetary Policy. Discuss different
instruments of Monetary Policy.[Marks 18]

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