LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034
B.A. DEGREE EXAMINATION –ECONOMICS
SUPPLEMENTARY EXAMINATION – JUNE 2007
EC 4500 - MACRO ECONOMIC THEORY
Date & Time: 27/06/2007 / 9:00 - 12:00
Dept. No.
PART – A
Max. : 100 Marks
5 x 4 = 20
Answer any FIVE Questions with not exceeding 75 words each.
1.
2.
3.
4.
5.
6.
7.
Define National Income.
Distinguish between Microeconomics and Macroeconomics.
What are the components of effective demand?
What is structural unemployment?
State the Accelerator Principle.
Classify the business cycle on the basis of time.
What is economic growth and how does it differ from economic growth rate?
PART – B
4 x 10 = 40
Answer any FOUR Questions with not exceeding 150 words each.
8. Discuss the importance and significance of national income estimates in modern economic
analysis.
9. Explain the economic flows in an economy with financial markets.
10. What are the fundamental assumptions made by Classical economists in enunciating their
theory of employment?
11. Explain the factors determining investment expenditure in the economy.
12. Describe the principle of Accelerator and bring out its limitations.
13. Explain the anti-inflationary measures in controlling inflation.
14. Discuss the Multiplier-Accelerator model proposed by Samuelson.
PART – C
2 x 20 = 40
Answer any TWO Questions with not exceeding 300 words each.
15. Analyse the Keynesian theory of income and employment.
16. Elaborate the Kaldor’s theory of trade cycle.
17. Analyse the IS-LM model.
18. Examine the effects of investment on productive capacity through the Harrod-Domar model.
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