Macroeconomics — DU B.A. (V.S.) Small And Medium Enterprise Previous Year Question Papers

7. (a) Discuss the advantages of free trade. (b) What is Import substitution strategy to increase the growth of small scale industries? (9,9) 8. Write notes on any two of the following : (a) Circular flow of income. (b) Nominal versus real GDP (c) Relationship between consumption and saving functions. (9,9) : B.A. (VS) Small and medium enterprises DSC 3. Part of the questions to be attempted together. 1. (a,) Discuss the value added method of measuring national income. What are the problems faced in its estimation? (b) Is increase in National income an indicator of economic welfare? Comment. (8,10) 2. (a) What is multiplier? Explain the working of it. (b) Calculate the value of multiplier and change in income when change in investment in the economy is { 100 crore and the Marginal propensity to save 3. .(a) Using proper diagrams, explain the determination of national income. (b) Calculate the equilibrium level of income (Y), disposable income, Consumption and government multiplier for the given information about an economy: C = consumption, Yd = disposable income, G = government expenditure, t = tax rate Calculate equilibrium level of income (Y), government multiplier and budget surplus/deficit. 4. (a) Explain the derivation of IS curve. Discuss the factors that affect the slope 6f IS curve. (b) Explain how equilibrium rate of interest is determined in the money market. (10,8) 5. (a) What is crowding out effect? On what factors does it depend? Use suitable diagram. (b) Explain the role of micro finance for promoting small scale industries. (8,10) 6. (a) How is equilibrium level of employment and wage rate determined in the classical system. (b) Explain the effect of shift in aggregate demand curve when there is full employment in the economy. (10,8)