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ISQ Examination (Summer-2009)
ISQ Examination (Summer-2009)
ISQ Examination (Summer-2009)
Mr. B:
Mr. A:
Mr. B:
Based on the above discussion, Answer the following questions: i) Is there any trade-off between inflation and growth in Pakistans economy? Justify your view point with reasoning. Explain why macro economic stability is important for smooth functioning of economy.
(03)
ii)
(03)
Q.4
(A)
Outline the major factors responsible for liquidity pressures experienced by Banking System in Pakistan in recent past? (05) What are the implications of high fiscal deficits for monetary policy? Discuss in the context of Pakistan. (05) What does a balance of payments statement tell us? (02)
Q.4
(B)
Q.5
(A)
Q.5
Q.6 Q.6
(B)
(A) (B)
Q.7
Q.7
(A)
(B)
Evaluate the effect of Devaluation on the Trade and Economic growth. (02)
Why the financial intermediaries are less risky and provide liquidity to the savers? Explain. (03) Explain why it is not a sustainable policy to attempt to keep unemployment below its natural level according to the augmented Phillips Curve model. (04) The Government uses an income yardstick of a dollar-a-day per person to define poverty. But this is a very misleading figure in Pakistans case. Explain why? (03) What is the money multiplier? (02)
Q.8
(A)
Q.8
(B)
Q.8 Q.9
(C) (A)
Higher monetary growth will never affect unemployment, rather, it will be reflected in higher inflation. Explain. (03) Is GDP and GNP accurately measures human welfare? Support your answer with a suitable reason. (03)
Q.9
(B)
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