EC03 Macro Economics BA Question Bank : vmou.ac.in

Name of the University : Vardhman Mahaveer Open University
Degree : BA
Department : ECONOMICS
Subject Code/Name : EC-03 – Macro Economics
Year : 2
Semester : II
Document Type : Question Bank
Website : vmou.ac.in

Download Model/Sample Question Paper : https://www.pdfquestion.in/uploads/vmou.ac.in/3482-EC-03_209.pdf

VMOU Macro Economics Question Paper

SET – A

Very Short Answer type questions :
1) What is the difference between intermediate goods & final goods and services-
2) What do you mean by inventory investment-
3) Why the national income is measured at factor prices-
4) Distinguish between nominal & real rate of interest.
5) What do you mean by balanced budget multiplier-

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6) Define balance of payment.
7) What do you mean by Fixed Exchange Rate-
8) State any two demerits of fixed exchange rate.
9) What is Ratchet effect-
10) Differentiate between Ex-ante and Ex-post investment.

Short Answer type questions :
1) Explain the various concepts of national income. Under what circumstances national tends to be underestimated.
2) Explain the classical theory of employment.
3) Discuss the output determination process in a Keynesian Model.
4) Discuss the liquidity preference theory in detail.
5) Discuss the various phases of business cycle in detail.
6) “Balance of payments always balances.” Elucidate.
7) “Saving is a curse for an Economy.” Elucidate it.
8) Discuss the role of macro economics analysis in business activities.

Long Answer type questions :-
1) Discuss the three approaches of measuring national income- Show that these three approaches give identical result.
OR
2) Explain the impact of an increase in the money supply in the short run & in the long run in an AD-AS model.
3) Explain the Keynes psychological law of consumption with its implications.
OR
4) Explain the IS – LM approach in the determination of Interest rate.
5) Briefly discuss the demand pull and cost push inflation.
OR
6) Examine the effectiveness of monetary and fiscal policies using IS – LM functions.
7) Critically analysis the role of Expenditure switching and Expenditure reducing policies for balance of payments adjustments.
OR
8) How is flexible exchange rate determined in a free market economy- Explain with the help of suitable diagram.

SET – B

Very Short Answer type questions :
1) What does the consumer price index measure-
2) Define production as an income generating activity.
3) Define GDP deflator as a measure of inflation.
4) What do you mean by crowding out effect-
5) Discuss the role of the government in the loanable funds market.
6) Why is the aggregate demand curve slopes downward-
7) Differentiate between APC and MPC.
8) What do you mean by paradox of thrift-
9) What do you mean by government expenditure multiplier-
10) List two items of the capital accounts of balance of payment.

Short Answer type questions :
1) Discuss : GNP at market price
2) What is meant by national income accounting- Illustrate the benefits of Social Accounting.
3) Explain the critics of Keynes over classical theory of employment.
4) Explain the relative income hypothesis.
5) Discuss the role of intermediaries in the financial market-
6) What is inflation- Discuss the various types of Inflation.
7) Explain the Schumpeter’s innovation theory of Business cycles.
8) Explain supply side economics and its policy implications.

Long Answer type questions :
1) Explain the process of circular flow of Income in an open economy.
OR
2) What is effective demand- How is it determined- Discuss its importance.
3) Discuss the concept of investment multiplier and its role in the theory of income and employment.
OR
4) Discuss the theory of Phillips curve. Explain its implications in Indian economy.
5) Discuss the impact of high inflation on an economy.
OR
6) Why is the AS curve upward sloping in the short-run & vertical in long run-
7) Explain the flow of Income in a closed economy.
OR
8) Explain the classical theory of Interest.