EC002-21

Name :

Register No.:

TAMIL NADU NATIONAL LAW UNIVERSITY, TIRUCHIRAPPALLI

B.A. LL.B. (Hons) Degree Programme
Second Year, Third Semester, Mid Semester (Odd-Semester) Examinations, November 2021
ECONOMICS - II (Indian Economy)
Time: 2 Hours Maximum Marks: 20
PART – A (2 X 5= 10 Marks)
Answer the Following Questions:
1. Calculate Consumer Price Index from the following information (Table 1).Assume
Qi0=Qit& Base year=2012
Table 1:
Expenditure in Expenditure
Quantity Price in 2012 Price in
Item 2012 in 2021
Qi0 Pi0 2021
Pi0Qi0 PitQit
Rice 25 kg ₹ 5/kg ₹ 10/kg
Pulses 5 kg ₹ 10/kg ₹ 25/kg
Clothing 5m ₹ 20/m ₹ 50/m
1 room ₹ 500 per one
Housing ₹ 800
set room set

2. Table 2 presents growth in real GDP for Country A and Country B. For each country
find:
a. Relative increase in output between 2000 and 2020.
b. Output per capita for 2000 and 2020.
c. Relative increase in output per capita between 2000 and 2020.
d. Which measure of economic growth, as calculated in a. or c., ismore useful?
Table 2:
Particulars 2000 2020
Country A
Real GDP ₹ 650000000 ₹13000000000
Population 166000 224000
Country B
Real GDP ₹528614000 ₹1295100000
Population 135000 270000

Page 1 of 2
 PART – A (1 X 10 =10 Marks)
Answer the Following Questions:
3. Use aggregate demand and aggregate supply curves AD and AS (Figure shown below) to
answer the following questions:
a. Is the aggregate supply curve Keynesian or classical?
b. Find the economy’s equilibrium level of output and price level.
c. Does an increase in government spending, ceteris paribus, shift aggregate demand
or aggregate supply? What happens to equilibrium output and the price level?
d. Suppose there is a technological advance rather than an increase in government
spending. What happens to aggregate demand? Aggregate supply? Equilibrium
output? The price level?

𝑃𝑟𝑖𝑐𝑒 𝑙𝑒𝑣𝑒𝑙 (𝑃)

𝐴𝑆 𝐴𝑆′

𝐵
𝑃2
𝑃0 𝐴

𝑃1 𝐶
𝐴𝐷′
𝐴𝐷

0 𝑌1 𝑌2 𝑅𝑒𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡 (𝑌)

Figure 1

__________________________

Page 2 of 2