IGNOU ASSIGNMENT QEUTONAL CENTRE CODE 1 07: DELNTY es PRogRamme Cope: MET Course Title... ANALYSTS 18s KssWO Enrolment Number... SouRngx me... M Moar Le pom Ber 2B OtETSH ES emate 50+ aasn re @ TamTe a ACaN mse Scanned with CamScannerMEC-002: MACROECONOMIC ANALYSIS Assignment (TMA) Course Code: MEC-002 Assignment Code: MEC-002/AST/2019-20 Maximum Marks: 100 Note: Answer all the questions. While questions in Section ‘A carry 20 marks each, those in. Section B carry 12 marks each. Section A 1 Bring out the salient features of the Solow Model. In what respects the golden rule is different from the steady state growth rate? (Your answer should include the assumptions, important equations, appropriate diagrams and its interpretation). Consider the overlapping generations model where each member lives for two time periods ‘t" and (t+1). Assume that individuals work in time period *t’ and eam wage ‘work in time period (t+1) and survive on interest income. ring time period ‘t’. income, while they do not Explain the impact of an increase in interest rate on consumption dul Section B 3. Interpret the IS and the LM curves. What policy implications do they have? 3. Bring out the reasons for rigidity in price and wage rate. What implications do they have? 4. Explain in brief, the decentralized houschold problem in the Ramsey model. 5. Critically evaluate the endogenous growth theory. 6. What is meant by business cycle? How does the political business cycle model explain it? 7. Write short notes on the following. a) Ineffectiveness of fiscal policy under flexible exchange rate b) Lucas Critique Scanned with CamScannerMEC- 002: MACRO ECONOM TC ANALYSES — SéGtten A =a 1 | Gompens A cen taaok Lakuiten Rha Romsry moolet Gro Contud Plormun 2 thre Sotod nodal fox EMonoic 4 = rota Roo. 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