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TDC (CBCS) Odd Semester Exam., 2020O

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held in March, 2021
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ATYA
ANCO
YARA
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ECONOMICS
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E9TO 199
(3rd Semester )
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ANAR
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Course No. ECOHCC-302T
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Intermediate Macroeconomics-I)
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Full Marks: 70
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Pass Marks : 28
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Time: 3 hours
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The figures in the margin indicate full marks
for the questions
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SECTION-A
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1. Answer any ten of the following questionas

2x10-20
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What is aggregate demand?

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(a)
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(b) What is autonomous

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expenditure?
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Define aggregate supply.

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(d) What is equilibrium level of income?

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10-21/266
(Turn O
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2)
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(e) What is inflation?
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Define stagflation.
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(g) Give the meaning of natural rate of
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unemployment.
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What is adaptive expectation in the
context of Phillips curve?
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9 Write two components of aggregate
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demand in the open economy.
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)Mention two drawbacks of Purchasing
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Power Parity theory.

k) What is Purchasing Power Parity?

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W h a t is exchange rate?
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(m) State CRR.

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(n) Distinguish between active and passive

monetary policies.
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(o) What the instruments of monetary

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are
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policy?
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What is monetary neutrality?

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(a) Define fiscal policy.

(Continued)
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10-21/266
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3
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(7 What is govenmment
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(s) Name two types of Government budget.
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Mention two assumptions of Ricardian
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equivalence.
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SECTION-B
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Answer any five questions
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of the components of
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2. Give an outline
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Derive aggregate demannd
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aggregate demand.
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curve in IS-LM
framework. 4+6 10
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in AD-AS
3. Determine equilibrium output
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that lead to the
model. What are the factors
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curve?
6+4 10
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shift of aggregate demand
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short-run
Describe
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Define Phillips curve.

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4.
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with the help of diagram.

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Phillips curve
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between adaptive expectation
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5. Distinguish
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What are the

rational expectation. the
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and
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rational expectation theoryo

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assumptions of
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Discuss briefly rational expectation theory.

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3+3+4 10
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10-21/266 (Turn Over )

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4)

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6. Define foreign exchange rate. Discuss how
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exchange rate is determined under demand-
supply approach. 3+7-10
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7. State and explain the
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purchasing
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power
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parity theory of exchange rates. Mention the
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limitations of the theory. 7+3 10
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8. What is monetary policy? Discuss the
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objectives of monetary policy.
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3+7 10
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9. (a)
(a) How does a rule-based monetary policy
differ from discretionary monetary
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policy? E.
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(b) Discuss the role of monetary policy in a

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developing economy. 4+6 10

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10. "Financing of the budget deficit brings to

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light the different kinds of macroeconomic

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imbalances." Discuss briefly.

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10
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11. Discusss critically Ricardian equivalence

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10
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theory.
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