M.A. (Economics) OTHERS 2013 And II Eco Growth Paper Macro Eco Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q4 (a) Whatis liquidity trap ? If an economy is stuck in one, do you advise monetary or fiscal policy ? 25 marks
   • (b) What is crowding out and when do you expect it to occur ? Is monetary or fiscal policy appropriate in this case ?
2. Q2 (a) Explain the life cycle hypothesis of consumption. How does it differ from the permanent income hypothesis ? 25 marks
   • (b) What is the relative income hypothesis ? Contrast it with the absolute income
3. Q3 Write an essay on Ricardian equivalence. 25 marks
4. Q4 (a) Explain open and covered interest parity. 25 marks
   • (b) Using the Mundell-Fleming model. Elaborate on the effectiveness of monetary and fiscal policies under fixed and flexible exchange rates ; Write an essay on the search model of equilibrium unemployment. 2 Explain any two of the following :— 25
   • (a) Sectoral-and-economy-wide budget constraints
   • (c) Targets, indicators and instruments of monetary policy Write short notes on any two of the following 25
   • (a) The balanced budget multiplier
   • (b) Consumption under uncertainty
   • (c) Short and long run Phillips curves
   • (e) The efficiency wage model

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