Macro Economics — Winter 2019

What do you mean by Macro economics? Explain origin and growth of macro economics in detail.

Explain following terms: 1. Stock variable 2. Flow variable 3. Equilibrium 4. Static analysis 5. GDP 6. Disposable income 7. Economics and Non Economic production

Elaborate upon the implication and limitation of Say’s law of market.

Explain the different methods to measure national income.

Explain the circular flow of income and expenditure in different sectors of the economy.

Explain the classical theory of output and employment.

Describe classical theory of inflation. How is neo-classical theory of inflation different from the classical theory?

What are the functions of money? Explain the quantity theory of money.

What is inflation? Explain demand pull and cost push inflation

Define unemployment. Explain different kinds of unemployment in detail.

What is meant by business cycle? What are the different phases of business cycle?

What do you mean by economic growth? Explain in detail neo-classical theory of growth.

What is the basic theme of the life cycle theory of consumption? Does this theory really hold in practice?

What is Philips curve? Discuss the reasoning behind the negative slope of the Philip curve.

What is monetary policy? Explain limitation and effectiveness of monetary policy.

What monetary measures government can take to control inflation in the economy?

Explain in detail important tools of fiscal policy.