Macro Economics — Winter 2023

What are the limitations of macroeconomics? What is the usefulness of macroeconomics in spite of its serious limitations?

What is macroeconomics? How is it different from microeconomics state the difference?

What are the methods of measuring national economy? What problems are confronted in estimating national income ?

What is say’s law? Explain the law in context of a barter economy and a monetized economy?

Discuss Principle of effective demand. Explain equilibrium level of employment and output?

The household with large accumulated wealth and a given income tend to spend more than those with the same income but no wealth. Do you agree with this statement? Give reason for your answer.07

Define the two sector model of circular flow. Explain and illustrate graphically the circular flow in two sector model with capital market?

What are the various approaches to the definition of money? “Money is a factor of production. Do you agree with the statement? Give your reasons”

Explain the classical quantity theory of money. Examine critically the classical quantity theory of money.

What is meant by time lag? How does it affect the effectiveness of monetary policy?

Describe the effect of inflation on different section of economy

Wh a t is the Samuelson’s theory of trade cycle? Explain his model of deriving multiplier and acceleration values?

What is meant by economic growth? Does increase in per capita income always indicate economic growth? Page 1 of

What is Phillips curve? Discuss the dynamic of unemployment and inflation and the long run Phillips curve.

Wh a t i s t h e nature of relationship between inflation and unemployment? does inflation always promote employment? if not why explain ?

07 What do you think would happen in case of increase in investment in an economy when there is full employment?

Neither under saving nor over saving is good for any economy. Discuss Page 2 of