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Reg. No. :

Code No. : 12405

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Sub. Code : R 3 EC 61/

B 3 EC 61

B.A. (CBCS) DEGREE EXAMINATION, APRIL 2015.

Sixth Semester
Economics Main
MACRO ECONOMICS II
(For those who joined in July 2008-2011)
Time : Three hours

Maximum : 75 marks

PART A (10 1 = 10 marks)

Answer ALL questions.
Choose the correct answer :
1.

UPh uzu Gzuz xPP

zu
(A) Csk xP (B) xP
(C) |S xP (D) C Hx
Ricardo divided the economy into how many
sectors
(a) Two sectors
(b) Three sectors
(c) Four sectors
(d) None of these

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2.

U Pzxi Q u Gx
(A) EP T
(B) {zvP
(C) Gv[PUP u
(D)

C Gx

Variable capital according to Marx is

3.

(a)

wage for labour

(b)

rent for land

(c)

capital for machines

(d)

none of these

{v uk Gx
(A) Es uk
(B) Gv[P [Su
(C) HP E \zxUP
(D)

C Gx

Financial investment means

(a)

Real investment

(b)

Purchase of machines

(c)

Transfer of existing assets

(d)

None of these
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4.

umh {nUS PoP

(A)
(B) mi
(C) u Cv{ BUPzv
(D)

C Azx

Factors determining investment

5.

(a)

income

(b)

interest

(c)

marginal efficiency of capital

(d)

all the above

R] u J
(A) SQ P B
(B) }sh P B
(C) uUP { B
(D)

C Hx

Keynesian economics is a
(a)

Short period analysis

(b)

Long period analysis

(c)

Static analysis

(d)

None of these
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6.

u { UP R xx
(A) u uk (B) A_ uk
(C) (A) (B) (D)
Keynes advocates
depression

7.

C Hx

(a)

Private investment

(b)

Government investment

(c)

Both (a) and (b)

(d)

None of the above

to

remove

u PP u Gx
(A) PP |UP[P J
(B) PP |UP[P u
(C) (A) (B)
(D)

C Hx

TRADE-OFF in Macro Economic Policy means

(a)

Co-ordination of Policy objective

(b)

Conflict of policy objectives

(c)

Both (a) and (b)

(d)

None of the above

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8.

{
(A) nUP

(B) nmh

(C) (A) (B) (D)

C Hx

Fluctuations in prices result in

9.

(a)

Inflation

(b)

(c)

Both (a) and (b) (d)

Deflation
None of these

u Pzv k nUPP Gx?

(A) A nUPP
(B) |k{ nUPP
(C) G nUPP
(D)

T Hx

Monetary policy adopted during depression is

10.

(a)

Dear money policy

(b)

Neutral money policy

(c)

Cheap money policy

(d)

None of the above

{vUPP vmhzu Akzxx

(A) A_
(B) P v
(C) Cv [Q
(D)

C Hx
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Fiscal Policy measure is implemented by the

(a)

Government

(b)

Registrar of companies

(c)

RBI

(d)

None of the above

PART B (5 5 = 25 marks)

Answer ALL questions, choosing either (a) or (b),

each answer should not exceed 250 words.
11.

(A) {zvx
QhUS
E USP.

AvPi

Rent is the differential surplus earned by

land Explain.
Or

(B) UPh
Q
GkPP GxP.

Pmmi

Write the assumptions of Ricardian theory of

distribution.
12.

(A) vmhmh uk, Es uk & USP.

Explain Ex-ante and Ex-post investment.
Or
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(B) uzv Cv{ BUPzv ]

S P.
Write a brief note on Marginal Efficiency of
Capital.
13.

(A) miQuzvS u BUPzvUS

E uh SxP.
Explain the relationship between Rate of
interest and Marginal efficiency of capital.
Or

(B) zu, {P uk ] S GxP.

Write short
investment.
14.

notes

on

Gross

and

Net

(A) u a] Gx \\ GNP
a] .
Economic Growth is percentage increase in
GNP Explain.
Or

(B) uU PP {
Gx G?
What is meant by price stability in macro
economic policy?
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15.

(A) ]U
Pmkkzu
nU
PP u Pmkmk P
G kzukQx.
How are the qualitative measures of
monetary policy used to control price rise?
Or

(B) nUPP UQzx GxP.

Write about the importance of monetary
policy.
PART C (5 8 = 40 marks)
Answer ALL questions, choosing either (a) or (b),
each answer should not exceed 600 words.
16.

(A) u G G? uzv
PP USP.
What is investment? Explain the various
types of investment.
Or

(B) yshmh umh vUS PoP

.
Explain the factors affecting inducement of
investment.
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17.

(A) R] GkPP u[Q |kPUS

G x Gu USP.
Elucidate the applicability of Keynesian
assumptions to under developed countries.
Or

(B) u[Q |kP R PP

USP.
Explain the policy measures of Keynes
towards under developed countries.
18.

(A) u PP |UP[P
u .
Evaluate the conflicts of macro economic
policy objectives.
Or

(B) nU PP E|mk
\{ UP uP.

|mk

Explain the monetary policy for internal and

external balance.
19.

(A) uU PP |UP[P
J[Qnv E ]UPP BP.
Discuss the problems of co-ordination of
Macro Economic Policy.
Or
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(B) uU PP
A|mk \zx
{ GxP.
Write about full employment and balance of
payment in Macro economic policy.
20.

(A) nmhzuU Pmkkzu [S u

UP C u G
kzukQx?
How are Bank Rate and Cash reserve Ratio
used to counteract depression?
Or

(B) |kP nU PP [Q
uSzx GxP.
Give an account of the role of monetary
policy in developing economies.

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