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Symbiosis Centre for Management and Human Resource Development

MBA & MBA(BA) (2022 -2024) Sem I1
MID TERM EXAMINATION
Subject: Macrocconomics for Managers
Date: 20/01/2023 Marks: 20 Duration: 45 Min.

Instructions:
All questions arecompulsory

Q.1 With the help of a suitable diagran, explain the concept of stag!lation. Comment on the ways of
coming out of stagtlation. (5 Marks)

Q.2 The following is the information from the national income accounts of a hypothetical country
GDP at Market Prices = 10000;

Consumption Expenditure 1500;

I.avestment expenditure - 4000;

Government purchases of goods and services 5000;

Depreciation - 200;

Net factor income from abroad = 3000;

Indirect taxes Subsidies = 300; Find out the value of net exports i.e., exports minus imports.

(3 Marks)

Q.3 The following is the information from the national income accounts of India for the year 2004
05: 960982; Gross Profits, Rent and Interest 1286451; Indirect Tax
Wages and Salaries =
= -

Subsidies-310315; Consumption Expenditure 863841; Net factor incomefrom abroad

30810; Depreciation =203321; What is the GDP at factor cost for India for the year 2004-05?
Also find out the NNP at market prices for India for the year 2004-05. (6 Marks)

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 Suppose in an economy, consumers consume only two goods- (6 Marks)
Q.4

Year 2006
Commodity Year 2005

Q Q

A 4 6 8

B 5 10

In the above table

P- Price per unit of the good.

Q-quantity purchased by the consumer

If year 2005 is the base year, then find out-

a. Inflation rate(using consumer price index).

b. GDP deflator.

Explain the detailed working in terms of the indices used.

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