Macro Economics — Winter 2018

Explain in detail the circular flow of income and expenditure in an open economy, with the help of a diagram.

What is the scope of macroeconomics? How is it different from microeconomics?

Explain the Keynesian life-cycle theory of consumption in detail

Explain in detail Fisher’s Quantity Theory of Money (QTM).

Explain the classical theory of employment in detail, with the help of a figure

Discuss in detail the functions of money.

What is meant by inflation? Explain the types of inflation in detail.

What is meant by economic growth? Discuss all the factors affecting economic growth in detail.

Discuss in detail the shortcoming of the barter system.

Explain different phases of economic growth, with the help of a figure.

Explain the neo-classical theory of economic growth.

Explain the Harrod-Domar theory of economic growth

Discuss the limitations of monetary policy and fiscal policy.

What is meant by monetary policy? Elucidate in detail the quantitative instruments of monetary policy

Discuss in detail the demand-pull inflation and wage-push inflation

Describe the effect of inflation on different sections of the economy

What is meant by fiscal policy? Discuss in detail the instruments of fiscal policy