Final-Term Examination (Macroeconomics)

Subjective Part

Important Instructions!
You are provided with 5 questions from which you need to attempt only 2 questions.
ONE Question from 1 and 2 and ONE Question from 3, 4 and 5
Solve the Question on Answer Sheets and submit/upload your work over Google Classrooms (at
the respective mid-term examination post). Make Sure you upload the file in .pdf version within
the examination time.
No Late Submission will be accepted.

Each Question carries 10 marks. TOTAL MARKS (20)

ATTEMPT one Question from 1 and 2

Critically explain IS-LM Framework as formulated by Keynesian School

Question 1 of Thought. Also Explain the Derivation and Shifting of both the IS and
LM curves?

OR

Critically explain AD-AS Model by differentiating how Keynesian and

Classical School of Thoughts have explained the Short-Run and Long-
Question 2
Run Aggregate Supply Curve. Also Explain the Multiplier Effect in the
change in output in response to the change in autonomous expenditures?

ATTEMPT one Question from 3, 4 and 5

Critically Explain Real Business Cycle Theory and elaborate the

properties of RBC theory. In what ways the economy can achieve a
Question 3
Positive Normal Growth Path and how the economy avoids instabilities in
the Business Cycles?

OR

Critically Explain Rostow’s Five Stages of Growth and what is the

Question 4 importance of the Model in understanding how the economies have
progressed over time.

OR

Critically Explain the implications and importance of Demographic

Question 5 Transition Model (DTM)? Illustrate the model graphically and explain the
different portions of the model separately.