SVKM'S NNIMS

SARLA ANIL MODI SCHOOL OF ECONOMICS

Academic Year: 2022-23
Program: Master of Science qconomics) Year: I Semester: I
Subject: Macroeconomic Theory - I Batch: 2022-23
Date: 26 November 2022 Time: 2.30 pin to 4.30 pin
Marks: 50 Duntion: 2 (hrs)
No. of pages:±
FINAL EXANINATI0N

Instructions: Candidates should read carefully the instructions printed on the question paper
and on the cover of the Answer Book, which is provided for their use.

1 . In all 5 questions to be attempted

2. Answer to each new question to be started on a fresh page
3. Figures in brackets on the right hand side indicate full marks
4. Assume Suitable data if necessary
5. thaw a diagrammed wherever required

Ql. In the second bi monthly monctary policy review, the Monetary Policy (10)
Committee Onc) of RBI continue the withdrawal of the accommodative
stance and increase repo rate by 50 basis point to 5.90 percent. Discuss the
following observatioTis made by the committee in the context of NIC
decision

i. Inflation is projeeted to remain above the upper tolerance level of

RBI
ii. The Federal reserve raised the key-policy rate to its highest level
iii. The RBI has lower down the gro`hth forecast from earlier 7.2
percent to 7 percent for the current fiscal year

Q2. Writea shortNote (5 Marks each) (10)

Ricardian Equivalence
Exchange Rate Overshooting

1/2-
Q3. Discuss the Keynesian Aggregate supply curve under Fixed and variables (10)
money wages

Q4. Derive the Philips curve using the equation of wage and price (10)
deterination

Q5. Within the Mundell-Fleming Model given the fixed exchange rate, (10)
expansionary fiscal policy can lead to sulplus or deficit in balance of
payment, Tnie or false, Justify your answer

Q6. Discuss the Difference between Endogenous and Neoclassical Growth (10)
theories

2L/2