[This question paper contains 4 printed pages.] Sr.No. of Question Paper: 91 E Unique Paper Code a 227351 Name of the Course : B.A, Programme — Economics Name of the Paper, _ Principles of Macro Economics ~ I Semester 21 Duration : 3 Hours Maximum Marks : 75 Instructions for Candidates Write your Roll No. on the top immediately on receipt of this question paper. 2. All questions carry equal marks. 3. Answer any five. 4 Answers may be written either in English or Hindi; but the same medium should be used throughout the paper. wri & fay Ada L Wow & fad a ae fey ag Puffs eat aT aria fafa 1 2 wi wet a wr aa e) 3 wg Ah Ute wet @ oer Gf 4. WMT a a Ta Siete aT RS RN eae eT Oy, Afr we Tee ar eT Ge & ert ae Explain the steps involved in the estimation of national income with the help of the income method. «s) em aroraeen eA west ara a ae aA ae Pir at aver TE (@) Derive and explain the working of in investment multiplier in a two sector economy ? (7%) PIO,91 2. (>) @ If the marginal propensity to save (mps) is-0.01, what is the value of the multiplier ? ( If (mps) increases to 0.1 what would be the value of the multiplier ? (ii) Other things remaining the same, how would the level of income be effected when mps increases from 0.01 to 0.1. Will the level of income increase or decrease, if so by how much? (7A) (&) Per gor BH aqeaer sem yore Ar we Rae onfarseen F wy | (&) (i) Be qUE SH aerT afe BE MPS 0.01 F 1 (a) a MPS 01-8) ag at ores BAT a ET eT aN (ii) WE oa are Garr, A sua A gar Hae Sen wea MPS 0.01 % 0.1 as TIE aT aT RA BST VEIT, TUE Ea aH fee? 3. (@ Differentiate between final and intermediate goods. ay (®)_ Given the consumption function (74) C=100+0.9Y () Derive the corresponding savings function. Gi) If we assume autonomous investment is Rs. 100 crores, at what level of income will savings become equal to investment. (&) ait egy ea weaadt egy % stare wa I (@) WR we nfagen ae sa GT C= 100+ 09Y A at sas (i) set wee wert SI fefee 1 (i) ae rae PAT 100 wes wt Bat re ore a ae de S aT Bt? 4af 91 3 Explain the determination of equilibrium level of income in a two’ sector Keynesian Economic framework model, using the aggregate expenditure approach Do you think that equilibrium will always occur at the full employment level of output 2 ; as) ee ROe olamen 4 era oe a wore 8 agi soa eR S Prefer an aia AAC WH are waa F fe Syet GDF whew yl tore ae we Bat 2? (a) Explain briefly the balance budget multiplier. (TA) (b) Given that I ~ 700 crores, C = (200 + 0.9 Yd), G = 100 crores, T = 100 crores, X = 600 crores, M = 0.10 Y. Find the equilibrium level of national income in an economy ? (TA) (@) gfe ame que afi day Yemen shag (@) ee faa anforren % Prt sent 3 waa ST GDP after aE @ 0) ‘sai WaT (C)=200+0.9 YD wr Rae () = 700 ais wea wet ex (G) = 100 wag wa went ee (1) = 100 mas et Pata (X) = 600 atte arent (M)=0.10¥ Determine GDP in a four sector economy with income - expenditure approach. (7%) If cash reserve ratio is 6% and initial deposits are Rs. 12,000, what would be the credit money supply in the economy, assuming cash with the public is zero. (TA) (&) Qe oe ee Ge or gain or wn Ged en aK aa Gt andere S ‘agit GDP a Pufer wife | PTO.1 4 (a) ve artaraeen Fae sens aft seTTIAT (CRR) 6% @ site sere wT 12,000 wad &, ake RAYS oe ya ene A A ares eer a wa a? Explain the speculative demand for holding money. Also explain the derivation of the money demand curve. as) wen tee wie Ae WARE ger A ag WARE Write short notes on any two: @ Quantity theory of money Gi) Paradox of thrift (ii) Net Exports (TATA) ‘feral a a feorit aAifire (i) aa ar aRRamm freer (i), Preeattan & Paar (ii) Je Prefer (1400)