[This question paper contains 4 printed pages.) Sr.No. of Question Paper: 91 E Your Roll No. Unique Paper Code: (227351 Name of the Course _: B.A. Programme ~ Economics Name of the Paper : Principles of Macro Economics ~ I Semester 1 Duration : 3 Hours Maximum Marks : 75 Instruet r dates 1. Write your Roll No. on the top immediately on receipt of this question paper. All questions carry equal marks. Answer any five. swN Answers may be written either in English or Hindi; but the same medium should be used throughout the paper. pri & fag fen 1 Re wetva @ fea A are fy ae Pree carr Fe HT ora FRAT 2. wit wet S wart sin 71 3. at dtr weit F ork fae 4. BERT aT aT BH aT BD ARM ee are A Aire, ArT ah oe aT MEAT eT 8 aa ue 1, Explain the steps involved in the estimation of national income with the help of the income method. as) eer opfereeat At oer art a Ty SY ar FAD et ae aif 2. @)_ Derive and explain the working of in investment multiplier in a two sector economy ? (A) PIO.o1 2 (e) —_ @ If the marginal propensity to save (mps) is 0.01, what is the value of the multiplier ? i) If (mps) increases to 0.1 what would be the valuc 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 ? (7%) (ae) FRA gore ot arate mer rer fier eer AA scare H warEy | (™) (i) Fs que A arr aftr aE MPS 0.01 Fat (i) a MPs 0.1 sag at RH BS apa SA OT a ENT (ii) AR sre ret eT, at se H aT aR ST-V MPS 0.01 F 0.1 wT! a HT BST MT, STA BB foie 7 3. (@) Differentiate between final and intermediate goods. 7) (b) Given the consumption function (7A) C=100+09¥ () Derive the corresponding savings function. (i) lf we assume autonomous investment is Rs. 100 crores, at what level of income will savings become equal to investment. (&) afte aegé ya weraat wage ¥ sat ame (@) af eer sefermen ar sei we C= 100+ 0.9 B at Tes (i) set wan war Ht Rae (i) AR wae Fae 100 wag wa 3 at fe ora aw aE fae Ss aA at? 7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 ? (15) er fedtata seberrecr 3 wer ora ot eraren B egies eae B Prefer ar ava aA 1 wa ant wad Ff Wafer GDF wre ye dorm ar we st B? (@ Explain briefly the balance budget multiplier. a) (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 ? (74) (&) daft wae que ah dda A aren aig (a) we fers seferen % Ret sing & agive at GDP wet aT @ ) arin wet (C)=200+0.9 YD area PAT (1) = 700 wee wt went aq (G)= 100 wag we Weta (1)=100 es Pratt (X) = 600 ads Bat area (M)=0.10Y Determine GDP in a four sector economy with income ~ expenditure approach. (7A) 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. (7A) (=) aa aa was am shea ar we wee ea OK ata GT mnie F ‘agita GDP an Prefer athe PLO,91 4 (a) ww arteraeen Fae aeRe alee TAMA (CRR) 6% @ ste see WAT 12,000 wat @, oh aa Saw Ee awh Ba ae eI YH aa HT? Explain the speculative demand for holding money. Also explain the derivation of the money demand curve. (as) BET hea wi A cree AE 1 eT A eT eH TT ETT BATT Write short notes on any two : (@ Quantity theory of money Gi) Paradox of thrift Gi) Net Exports (TATA) ferdi A we feet efor: (i) ae ar afer Rraia (i) Reef & Pu (ii) qe Freie (1400)