LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.A., DEGREE EXAMINATION – ECONOMICS
FOURTH SEMESTER – SUPPLEMENTARY – JUNE 2012
EC 4503/4500 – MACRO ECONOMICS - I
Date : 27-06-2012
Time : 2:00 - 5:00
Dept. No.
Max. : 100 Marks
PART – A
(5 x 4 = 20 Marks)
Answer any Five questions, Each not exceeding 75 words:
1.
2.
3.
4.
5.
6.
7.
Distinguish between Positive and Normative Economics.
Briefly explain the terms stock and flow
Define National Income
What is effective demand?
What is Induced Investment?
Define say’s law of market?
Define Properties of IS-LM Curves?
PART – B
(4 x 10 = 40 Marks)
Answer any Four Questions, Each not exceeding 250 words:
8. Explain the Importance of Social Accounting
9. Discuss the nature and development of Macro Economic Theory?
10. Define the main Components of GNP and show why in the national accounts the gross national
product, gross national expenditure and gross national income must all be equal.
11. Discuss the importance of foreign trade multiplier in the theory of balance of payments.
12. What is meant by “Marginal Efficiency of Capital” (MEC)? Examine the role of MEC in the theory of
investment and employment.
13. How is the propensity to consume related to the employment multiplier?
14. Explain the Keynesian liquidity preference theory of interest
PART – C
(2 x 20 = 40 Marks)
Answer any Two questions, Each not exceeding 900 words:
15. Discuss the Nature, scope and limitations of Macro Economic Theory.
16. What are the different approaches in computation of national income? What are the difficulties in
measurement of national income?
17. Critically examine the Keynesian theory of income determination.
18. Derive IS – LM curve and analyse the general equilibrium of product and money market.
$$$$$$$$