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KRTSHNA KANT,,q, T{ANDIQUI STATE OPEN UNIVERSITY

Degree 2nd Year Exarnination - 2013
Course - EA Subject : Economics
Paper: (ID - Macro Economic Theory
Question No. Marks
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KKHSOU DEGREB zND YEAR Examination 2013

Subject : Economics
Paper - (ID :Macro Economic Theory

Time : 3 FIrs Full Marks : 80

1. Answer the following iluestions 1x8 = 8

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(a) Who wrote the book 'General theory of Employment, Interest and Money'?
'General Theory of Employment, lnterest and Money' qQfisotetqa CslF{ trRRqt
-
(b) The world economic crisis of 1929-33 is known as what?
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(c) The value of the multiplier and the value of the MPC are related.
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(d) Give an example of Bank Money.

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(e) The money whose acceptance can not be refused is called what?
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(0 Cash Trarrsactions Approach to the quantity theory of money was developed by which
economist?

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(S) What is Cash Resume Ratio (CRRX
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(h) What Inflation it is if the rate of rise in price level is beyond 100 percent per decade or more
than iO percent per annum?

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Economics-2--1
2. Answerthefollowingquestionsbriefly 2xE= 16
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(a) What do you mean by 'services'. 'Cq<fi'

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qt$..&d6q ?

O) What is current account in balance of payments? oqqlcn Kqq-qrouEsfrnqffrcafrffqt

(c) Mention the tluee broad types ofdis-equilibrium in the balance of payments.
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(d) Whatisfundamentalpsychologicallawofconsumption? cslrlir Gn'R-$ ryaryM-+Rft ftr

(e) what is the main difference between Multiplier and Accererator?
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1n arforfi ft I
(0 What is demand for money as stated by cambridge version?
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(g) Whatisdemand-pullinflation? Dtfu'qfu qgf.€&ftr
O) whatiscurrentAccountininternationaltrade? r{ffiFrqtftq]s bFiERnq'qrnftt

Economics-2---2
3. Answeranyfivequestionsfromthefollowing 4x5=24
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(a) Write a short note on the implications of the Say's Law of Markets.
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(b) Explain briefly the concept of high powered powered money.

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(c) Explain primary functions of money as medium of exchange and measure of value.
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(d) Mention any four measures to remove the balance of payments disequilibrium.
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(e) Write a short note on balance of trade.

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(0 What are the causes of deflation in an economy?

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(g) Explain the difference between balance of trade and balance of payments.
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Econornics-2--4
 x2-
4. Answeranytwoquestionsofthefollowing 16

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(a) Explainthefollo,wingcortcepts. s"qsfrst qr{qftfiq {fl?lil s{s I

(t GrossNational Product (GNP)

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0) NetNationalProduct0'rNP) qlqqFs €q"ltqq
(iii) Personalincome <ifurlsqfs
(rv) Disposable personal income <i3q1 Cqltli 3i&tfs qH I

(b) Elaborate the concepts of avarage propensity to consume (APC) and marginal propensity to consume
(lvIPC)
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(c) Describe the cost push approach to inflation. How does inflation affeet the economy?
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Economics-2---8
5. Answer any two questions from the following (Wthin 300 Words) I 0x2 = 20

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(l) Explain diagrammatically the determination of the point of effective demand.
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(b) Outliile ihe features of business cycles. Wth the help of a suitablc diagram explain the fbrrr
ptrases cf busines cycles in an economy with groivth trend"
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qQffift5 qbr{ qitr'q-JE4q fiffi1 s{q
q< {fr1$fs'{qr I

(c) Discuss the argurnents in favour of protection in iuternational trade. What methods can be
used t-or the prcteetion of dornestic economy?
q1ssfies qfnqjq rsq* ryqfu qflffi q",rrd e'fiEs i ffifu e{€fiJB qBrq TEwR qrK ft
ffi fr
<l^TEi eFse E\ 'iifi r

Economics-2---12