DU SOL Question Paper 2018 BA Economics - Macroeconomics

[This question paper contains 4 printed pages.l

4359 Your Roll l,/u

B.A. Prog./II G_II

ECONOMICS - Paper Il

(Macro-Economics) (B-1 17)

Time 3 Hours Maximum Marks : 100

(lltrite your Roll No. on the top immediately
on receipt of this question paper.)

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Note :* Answers may be written either in English or in Hincli,. but
the same medium should be used throughout the paper.

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Answer any five questions.
All questions carry equal marks.

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P.T.O.

What do you mean by national income' Explain the income
(7 ,t3)
method of estimating national income'

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2. Explain the Psychological low of consumption' If the
consumption function of an economy is C = 200 + 0'8Y
then derive the corresponding saving function (13"7)

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a
J. (i) What is the net export function? What are the factors
affecting the net exPort function?

(ii) You are given the following data for an economy
ConsumPtion function : C : 300 + 0'8Yd

Autonomous Investment : Io = 400 crores

Government expenditure : G = 300 crores

Net ExPort (X-M) = 200 crores
Tax:T=l00crores
Then calculate the equilibrium level of income' (13'7)

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4. Critically discuss the Fisher's quantity theory of money'
(20)

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5. Discuss the process of credit creation by commerciai banks'
(13,7)
What are its limitations?

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6. What do you mean by IS & LM - Curves? What are the
reasons for shifting of these curt'es?
(13'1)

P.T.O,

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1 . Differentiate between balance of payment (BOP) and
balance of Trade (BOT). What measures wouid you suggest
to correct the disequilibrium in these. (20)

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8. Write short notes on any two of the foliowing: (i0,10)

(a) Concept of tax multiplier

(b) Functions of money

(c) Autonomous and Induced investment

(d) Aggregate supply shock

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