Reg. No. :... Sub. Code : 3 EC 61 B.A. DEGREE EXAMINATION, NOVEMBER 2014. Sixth Semester Economics Main MACRO ECONOMICS II (For those who joined in July 2006 and 2007) Time : Three hours Maximum : 100 marks PART A (10 1 = 10 marks) Answer ALL questions. Choose the correct answer : 1. QºÄ ØÔ À Põm õmiøú CÆÁõÖ AøÇUP»õ? (A) v öuõßø U Põm õk (B) QºÄ ØÔ öuõsvu Põm õk (C) (D) öuõßø U Põm õk HxªÀø»
Macro-theory of distribution is also known as (a) (b) (c) (d) Neo-classical theory of distribution Aggregate theory of distribution Classical theory of distribution None of these 2. PõÀh ß QºÄU Põm õk CuÛß Ai øh õpu öpõshx (A) kuq (B) ö UQ (C) \ª (D) HxªÀø» Kaldor's theory of distribution is based on (a) Accelerator (b) Multiplier (c) Savings (d) None of these 3. Á Áõ \õμõ À ö\ U Ti u½møh CÆÁõÖ AøÇUP»õ? (A) uõ Ú HØ k u½k (B) ysh ö ØÓ u½k (C) (D) uû õº u½k GxĪÀø» Page 2
Investment does not depend on income is called as (a) (b) (c) (d) Autonomous investment Induced investment Private investment None of these 4. CÖ{{ø» u½mk õmh Gß x (A) Y I (B) I Y (C) I Y (D) Y I Marginal propensity to invest is (a) Y I (b) I Y (c) I Y (d) Y I 5. u½mk ö UQ Cuß øha \õº õs (A) MEI (B) MEC (C) MPC (D) GxĪÀø» The investment multiplier is a direct function of the (a) MEI (b) MEC (c) MPC (d) None of these Page 3
6. Rßêß TØÔß i, \ª CuøÚa \õº ux (A) Ámi (B) Á Áõ (C) ÁõhøP (D) C»õ According to Keynes, saving is the function of (a) Interest (b) Income (c) Rent (d) Profit 7. À ö õ ÍõuõμU öpõòøp ß CxÄ J öpõòøp BS (A) Áø» ßø (B) ~PºÄ (C) Ê{øÓ Áø»Áõ (D) GxĪÀø» One of the objectives of macro economic policy is (a) Unemployment (b) Consumption (c) Full employment (d) None of these 8. ö õ Íõuõμ Áͺa] CuøÚa \õº ux (A)»uÚ BUP ÂQu (B) Âø» (C) EØ zv (D) GxĪÀø» Page 4
Economic growth is a function of the (a) Rate of capital formation (b) Price (c) Production (d) None of these 9. n k{ø» À C UP Ásk GßÓ nu öpõòøp ß õupzøu uß u¼à TÔ Áº (A) õàiß]u (B) ÂUìjm (C) Rßì (D) áõí The objective of the monetary is neutrality of money, first told by (a) Paul Ensizig (b) Wicksteed (c) Keynes (d) Johari 10. CxÄ J nu öpõòøp ß P  õs (A) \ª Ãu (B) ~PºÄ Ãu (C) n C Ãu (D) u½mk Ãu One of the instruments of monetary policy is (a) Savings rate (b) Consumption ratio (c) Cash reserve ratio (d) Investment ratio Page 5
PART B (5 6 = 30 marks) Answer ALL questions, choosing either (a) or (b), in about 250 words. 11. (A) QºÂß UPõº hõ Põm õmiß SøÓPÒ õøá? What are the weakness in Ricardian theory of distribution? (B) õºuêß QºÄU Põm õmiß UQ U P zxupøí öáîu öpõnºp. Bring out the main points of Marxian theory of distribution. 12. (A) ußâ ØÖ ysk u½møh ÁÖ kzxp. Make a distinction between Autonomous and Induced investment. (B) MEC ØÖ MEI P zxupøí ÂÍUSP. Explain the concepts of MEC and MEI. Page 6
13. (A) \ª ØÖ u½miøú ÂÍUSP. Explain the meaning of saving and investment. (B) ßu[Q õkpîà uøáu SøÓÄ μa\øúø ÂÍUSP. Explain the problem of demand deficiency in an underdeveloped countries. 14. (A) ö õ ÍõuõμU öpõòøp ß UQ õup[pò õøá? What are the principal objectives of economic policy? (B) Ê{øÓ Áø»Áõ ØÖ Âø» {ø» kzuà öpõòøppðus Cøh õú P zx ÁÖ õkpøí Bμõ P. Analyse the conflict between the goals of full employment and price stability. 15. (A) Á[Q ÃuU öpõòøpø ÂÍUSP. Explain the bank rate policy. (B) nu öpõòøp ß õup[pò õøá? What are the objectives of monetary policy? Page 7
PART C (5 12 = 60 marks) Answer ALL questions, choosing either (a) or (b), in about 600 words each. 16. (A) PõÀhõ ß QºÄU Põm õmiøúz vóúõ Ä ö\ P. Critically examine Kaldor's theory of distribution. (B) UPõº hõâß Á Áõ QºÄU Põm õmiøú ÂÍUSP. Explain the Ricardian theory of income distribution. 17. (A) Rßêß u½mku Põm õmiøúz vóúõ Ä ö\ P. Critically examine the Keyne's theory of investment. (B) u½møhz wº õûus PõμoPøÍ ÂÁ. Discuss the determinants of investment. Page 8
18. (A) Rßêß Áø» Áõ U Põm õmiøú Bμõ P. Examine Keynesian theory of employment. (B) Rßêß ö UQ ØÖ CßøÓ Áͺ x Á õkpò ØÔ Bμõ P. Analyse the Keynesian multiplier and the present-day developing countries. 19. (A) À ö õ ÍõuõμU öpõòøp õup[pøí J [Qøn uß μa\øúpøí Bμõ P. Examine the problems of coordination of macro economic policy objectives. (B) ö õ ÍõuõμU öpõòøp ß À ÁÖ õup[pðuqøh õú P zx ÁÖ õkpøí ÂÁõv. Discuss the conflicts of different goals of economic policies. Page 9
20. (A) nãupzøuu Pmk kzu nu öpõòøp ß ö\ À õmiøú ÂÁõv. Discuss the effectiveness of monetary policy in controlling inflation. (B) Áͺa] øh u õkpîà nu öpõòøp ß SøÓ õkpøí ÂÁ. Describe the limitations of monetary policy in under developed countries. Page 10