PANDIT DEENDAYAL ENERGY UNIVERSITY

SCHOOL OF LIBERAL STUDIES

Program/Semester/Batch
(BABBA)_ (Semester –6) (2018)
INTERNAL ASSESSMENT-II

Paper Title: Macro-Economics Date: 15.02.2022

Paper Code: 18CECO61 Time: 9.30AM TO11:00 AM
Marks: 30

Q - 1) Explain the difference between final goods and intermediates. How

does the inclusion of intermediates affect the measure of national income?
[5]
Q – 2) Why is it difficult to distinguish among frictional, structural, and
cyclical unemployment? Why is unemployment an economic problem?
Under what condition would an increase in the unemployment rate be a
positive sign? [10]
Q – 3) 1.Explain whether the following events affects SRAS, Long run
Aggregate Supply curve or Aggregate demand Curve. Draw Diagram for
each case.

a. When the government reduces subsidies & Increase tax rates.

b. An improvement in production technology
c. The consumption pattern of people change and they consume more now.
d. Increase in interest rates.(10 Marks) .

Q- 4) Do multipliers have same effect on economy everywhere? On which

factor does it depend on? Explain the effect of foreign trade multiplier or
Government tax Multiplier on economy.
(5 Marks)