Macroeconomics – I — DU B.A. (Hons.) Business Economics (BBE) Previous Year Question Papers

Unique paper.Code : 2922101201. arri,te your Ron Noi. on the top inmediatel;y on receiE.i Of this ques±ion pcaper.) AZZ parts of each question must be done together. Attempt ¢z?e questions in all. (a) Discuss how equilibrium in assets market can be explained through money market. (a) The demand for money is positively related to output and negatively .related to rate of interest. Explain. (a) Higher interest rate sensitive investment is resulted in flatter IS curve. Explain with a suitable diagram. 2. Assume the following two sector model where : Ii = .0.2fty - 4j and (Z) Find an.equation for equflibriun in goods market (IS) and for the money. (Z£) Find iQut`put and the rate of \interest at which there.is simultaneous i EL"H equilibrium in' the money and goods .inarket. ¢£) Plot the IS' and LM equations and fad equilibrium output and the rat.e (a}) Derive 'the IS curve.. What are the key factors that cape the IS ourv.e. (a) The effectiveness of fi.seal policy depends on the position .and slope of the LM curve. Discuss. '`' ` 10 Explain Loanable fund theory .of interest rate ivith a Suitable diagram. Writ;'`in brief the sources and demand f'or ioanable funds. 9 Criticauy explain Quantity Theory of Money. IThat are its liritations ? 5. Deschbe the process of multiple credit creation by commercial banks. VThat .are the liritations to the power of banks to cl.eate credit? 1`8 Phillips curve ? (5.i) Elucidate the Keynesian. interpretation of Phillips curve.