ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Economics)

WARNING
1. 2. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE. SUBMITTING ASSIGNMENTS BORROWED OR STOLEN FROM OTHER(S) AS ONES OWN WILL BE PENALI ED AS DEFINED IN !AIOU PLAGIARISM POLICY". S'/'&*'%( A$*$/), 2112 T#*.4 M.%5&( 111 P.&& M.%5&( 61

C#$%&'( I)*%#+$,*-#) *# M.,%#',#)#/-,& (012) L'3'4( M. S,. E,#)#/-,& C%'+-* H#$%&( 12

ASSIGNMENT N#. 1
(U)-*& 178) Q. 1 Differentiate between personal income and disposable income. Which of these concepts is more significant from the viewpoint of consumption expenditures? (21) Q. 2 Define multiplier and how the analysis of multiplier is useful in formulating fiscal policy. (21) Q. 3 ompare lassical and !eynesian models of income and output determination. (21) (21)

Q. " Discuss the impact of #overnment expenditures on the money supply.

Q. $ %xplain why fiscal policy is ineffective if the demand for money is perfectly inelastic? (21)

ASSIGNMENT N#. 2
T#*.4 M.%5&( 111 (U)-*& 97:) P.&& M.%5&( 61 (21) Q. 1 %xplain the basic two approaches for deciding whether to invest or not.

Q. 2 %xplain the difference between micro and macro analysis of consumer behaviour. (21) Q. 3 Discuss the views of growth of supply side economists. (21)

Q. " %xplain how the aggregate supply and philisps curves are related to each other? (21) Q. $ Write notes on the following& a' %conomic %ffects of (nflation in )a*istan b' %+uilibrium ,ate of #rowth
1

(11;11)

---------