Master of Commerce (M.Com.) Part I SEM II 2017 2018 Nov 2018 MACRO ECONOMICS CON. & APPLICATION Question Paper - Mumbai University | munotes

Questions asked in this paper

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• 2. Figures to the right indicate full marks

1. Q1 “The intersection of the aggregate supply and the aggregate demand function determines the equilibrium level of income and output.” Discuss 15 marks
   • A. What is inflationary gap? Show it with the help of diagram. 07
   • B. Explain the nature of Phillips curve in the long run. 08
2. Q2 A. Explain how the IS curve is derived? Brings out the factors that determine the slope.of.IS curve. 7 marks
   • B. Discuss the derivation of LM curve. What are the factors that influence the shift in LM curve? 08
   • C. Examine the effects of fiscal policy on income and interest rate in the IS-LM model. 07
   • D. Explain the application of IS-LM model in the Indian economy from 2000-01 to 2005-06 08
3. Q3 A. Discuss expenditure adjusting policy to reduce deficit in the Balance of payment. 7 marks
   • B. Discuss effectiveness of devaluation in correcting Balance of payment deficit. 08
   • C. Explain the Mundell-Fleming model with the help of 07
   • D. Explain the J-curve effect. 08
4. Q4 A. Select the correct answer and rewrite the statement: 7 marks
   • (i) Under value added method, national income is measured by
   • (a) Adding the value at each stage
   • (b) Adding expenses at each stage
   • (c) Adding rent, wages and interest
   • (d) None of the above
   • (ii) In developing countries measurement of national income encounters problems
   • (b) Lack of adequate statistical data
   • (c) Lack of proper accounting practices
   • (d) the above
   • (iii) GDP deflator tells us the
   • (a) Nominal progress
   • (b) Real progress
   • (c) Rate of deflation in the economy
   • (d) None of the above
   • Q.P. Code :09715
   • (iv) Real interest rate explains a change in
   • (a) A purchasing power
   • (b) Money income
   • (c) The rate of inflation
   • (d) None of the above
   • (a) Real value
   • (b) Nominal value
   • (c) Both
   • (d) None of the above
   • (vi) As per HDR 2015, HDI value of India was
   • (d) None of the above
   • B. Validate the following statements: 08
   • (i) Under expenditure method income spent on every goods and services is included
   • (ii) GDP includes income earned by all the nationals
   • (iii) Human development measures the quality of life
   • (iv) Gender inequality measures progress made by the entire populations
5. Q4 Write short notes on any three: 15 marks
   • (i) Difficulties in estimating national income
   • (iii) Determinants of aggregate demand
   • (iv) Equilibrium in the goods and money market
   • (v) Effects of easy monetary policy on the Balance of payment
   • Q.P. Code :09715
6. Q3 at
   • S. IS-LM FASS ANT
   • Q.P. Code :09715
   • b. AN
7. Q2 be

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