Unit 1: Introduction to Macroeconomics

Q. What is Macroeconomics? Explain its importance and limitations.

Q. Distinguish between Micro and Macroeconomics.

Q. What are various variables of Macroeconomics? Explain them briefly.

Q. Discuss with diagram the circular flow of income and expenditure in two, three and four sector economy.      2021

Q. Explain various determinants of demand and supply.      2021

Q. What is aggregate expenditure? Write about the components of aggregate expenditure.      2022

Q. Discuss the long-run equilibrium using aggregate demand and aggregate supply.     2022

Q. What is static, dynamic and comparative static analysis in macroeconomics? Explain them briefly. Also distinguish between them.                   2022SN

Unit 2: Economy in the Short run

Q. What is IS-LM market framework? Discuss the equilibrium in the good and money market with the help of IS-LM framework.       2021

Q. What are the IS and LM curves? How are these curves derived? Write about the factors that cause shift in the IS and LM curves.          2022

Q. What is monetary policy? What are its objectives and role? Explain various instruments of monetary policy.      2022

Q. What is fiscal policy? What are its objectives and role? Explain various instruments of fiscal policy.

Q. Distinguish between monetary policy and fiscal policy.

Q. Discuss about the Keynesian view regarding the effectiveness of monetary and fiscal policy. Point out your views in favour of expansionary fiscal policy.

Q. What is aggregate demand? How it is derived? What are the causes of shift in aggregate demand curve?

Q. What is aggregate supply? Explain long run and short run aggregate supply curve. What are causes of shift in aggregate supply curve?

Unit 3: Inflation, Unemployment and Labour Market

Q. What is inflation? What are various causes of rising and falling inflation? What are the Anti – inflationary monetary measures that can be adopted by the Central bank?       2021, 2022

Q. What is inflation and deflation? Which one you prefer? Justify your answer.

Q. How inflation and interest rates are linked? Explain.        2021

Q. Explain social cost of inflation.

Q. What is Philips curve? Explain the trade-off between inflation and unemployment with the help of Philips curve.Elaborate how expected inflation causes a shift in the short-run Phillips’ curve.    2021, 2022

Q. What is unemployment? Explain natural rate of unemployment, frictional and wait unemployment.      2021

Q. What is labour market? Explain its interaction with production system.  (Explain briefly the role of labour market in production system.)      2021

Q. What is adaptive and rational expectations? Explain their advantages (role) and limitations.

Unit 4: Open Economy

Q. What is open economy and closed economy? Distinguish between them. Explain the process of flow of goods and capital in an open economy.      2021, 2022

Q. Discuss the impact of foreign trade on national income of an open economy.       2022

Q. Distinguish between fixed and flexible exchange rate systems. Discuss the causes of fluctuations in the exchange rate.      2022

Q. What is fixed and fluctuating exchange rate? Explain how exchange rate fluctuations affects investment in an open economy.        2021

Q. Explain Mundell-Fleming model with fixed prices in small open economy in fixed exchange rate scenario.      2021

Q. Explain Mundell-Fleming model with flexible prices in small open economy in floating exchange rate scenario.

Q. Write a brief note on rate of interest differential in case of a large economy. Also mention cause of differential in interest rate.

Unit 5: Behavioural Foundations – Investment and Money

Q. What is investment? What are its various types? Explain them briefly.

Q. Define private investment and write about different determinants of it. Suggest the measures to stimulate private investment.       2022

Q. What is business fixed investment? What are its determinants?        2021

Q. What is residential and inventory investment? What are its determinants?

Q. What is Demand for Money? What are its various types? What are the factors affecting demand for money?

Q. Explain various theories of Demand for Money: (VVI)

– Fisher’s Transactions Approach to Demand for Money VVI

– Keynes’ Theory of Demand for Money VVI   2022

– Tobin’s Portfolio Approach to Demand for Money VVI         2021

– Baumol’s Inventory Approach to Transactions Demand for Money         2021

– Friedman’s Theory of Demand for Money

Q. What is supply of money? How it is measured? Explain its components.        2021

Q. Explain the impact of supply of money on Indian economy.

Q. What are interest and income’s elasticity of demand for real balances.       2021

Q. Discuss the portfolio and transaction demand theories for real balances.        2021   

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