Master of Commerce (M.Com.) Part I SEM II 2017 2018 May 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 A. “Equilibrium level of income and output is determined by the interaction of aggregate demand and aggregate supply function”. Discuss 8 marks
   • B. Examine keynes’ concept of inflationary gap. What causes inflationary gap? 07
   • C. Bring out the relationship between unemployment in the short run. 07
   • D. Explain the trade-off between unemployment in the long run with the help of Phillip’s 08
2. Q2 A. Explain goods market equilibrium with the help of IS function. What causes shift in the IS function? 8 marks
   • B. Explain money market equilibrium and derive LM function. What determines the slope of LM function? 07 C Examine the effect of increase in government spending and tax rates on income and interest rates in 08 the IS-LM model
   • D. Bring out the effect of monetary policy on income and interest rates in the IS-LM model. 07
3. Q3 A. Discuss expenditure changing policies to correct disequilibrium.in the balance of payments. 8 marks
   • B. Discuss the right policy mix for correcting internal and external disequilibrium with the help of 07
   • C. Explain meaning of devaluation and.revaluation. Examine the elasticity and absorption approaches. 08
   • D. Examine the J-curve phenomenon following devaluation or depreciation of the currency. 07
4. Q4 A. Select the correct answer and rewrite the following statements: 7 marks
   • (i) The total money value of goods and services produced by the nationals during a given year is
   • d) of the above
   • (ii) In developing countries measurement of national income involves problems
   • a). Prevalence of non-monetized sector Lack of adequate statistical data
   • c) Lack of proper accounting practices
   • d) the above
   • Q.P. Code :09716
   • d) None of the above
   • (iv) GDP
   • a) Nominal progress in the economy
   • b) Real progress in the economy
   • c) Rate of deflation in the economy
   • d) None of the above
   • (v) Real interest rate explains changes in
   • a) Purchasing power
   • b) Money income
   • c) Rate of inflation
   • d) None of the above
   • a) Reproductive health
   • b) Empowerment
   • d) All of the above
   • B. Validate the following statements: 08
   • (i) GDP includes income earned by nationals living abroad
   • (ii) GDP deflator is used to work out real GDP
   • (iii) Capital due to high real interest rate in a country
   • (iv) Disempowerment of women will improve GDI of a country Write Short notes on any three: 15
   • (i) Income and expenditure methods of measuring national income
   • (ii) HDI and its limitations
   • (iii) Determinants of aggregate demand
   • (iv) Applicability of IS-LM in-India for the period 1995-96 to 2005-06
   • (v) Effect of tight money policy on the balance of payments
   • Q.P. Code :09716
5. Q3 at
   • a. sax ob
6. Q3 IS-LM GROTA
   • Q.P. Code :09716
7. Q3 ate
8. Q3 Gal
   • H) at
9. Q31 Hat Aleta
   • Q.P. Code :09716
10. Q3 ate
11. Q9 UST We
12. Q2 Alea
13. Q3 Tor
14. Q8 BT IS-LM
15. Q3 tar

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