[2] MEC-002

3. Explain, how equilibrium output and interest

No. of Printed Pages : 7 MEC-002
rate are determined on the basis of IS-LM

model.
MASTER OF ARTS (ECONOMICS)
(MEC) 4. Briefly discuss the life cycle hypothesis. How
Term-End Examination does it reconcile the differences between short-
December, 2021 run and long-run consumption function ?

Section—B
MEC-002 : MACROECONOMIC ANALYSIS
Note : Answer any five questions from this Section.
Time : 3 Hours Maximum Marks : 100

Note : Answer questions from both Sections as
directed.
Section—A
Note : Answer any two questions from this Section.
2×20=40
1. Bring out the salient features of the Ramsey
model as a decentralized household problem.
2. Explain through appropriate diagram how
5×12=60
5. Critically examine the Solow model of economic
growth.
6. What is meant by real rigidities ? Why do
rigidities occur in the goods market ?
7. Distinguish between absolute convergence and
conditional convergence of economic growth.
8. Bring out the salient features of real business
cycle.

monetary policy is ineffective in an economy 9. Discuss, how search models explain the issue of
with fixed exchange rate. unemployment in an economy.

P. T. O.
 [3] MEC-002 [4] MEC-002

10. Critically evaluate the relationship between MEC-002

inflation and unemployment.

11. What is meant by endogenous growth ?

Critically examine the A.K. model.

12. Write short notes on any two of the following : 2021

(a) Insider-outsider model

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(b) Golden rule

(c) Natural rate of unemployment

&

2×20=40

P. T. O.
 [5] MEC-002 [6] MEC-002

(real rigidities)

(Convergence)
IS-LM

&

5×12=60
(endogenous growth)

P. T. O.
 [7] MEC-002

(Insider-outsider

model)

(Golden rule)

(Natural rate of

unemployment)

MEC–002

P. T. O.