[This question paper contains 4 printed pages.

Sr. No. of Question Paper 5361 D Your Roll N 0 ••••••••••••••••

Unique Paper Code 227451

Name of the Course B.A. Programme Economics

Name of the Paper Principles of Macroeconomics - II

Semester IV

Duration : 3 Hours Maximum Marks : 7 5

~:3~ ~:75
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Instructions for Candidates

1. Write your Roll No. on the top immediately on receipt of this question paper.

2. Attempt five questions in all.

3. First question is compulsory.

4. All questions carry equal marks.

5. Answers may be written in Hindi or English but the same medium should be
followed throughout the paper.

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PTO.
5361 2

1. Write Short notes on any two of the following :-

(a) What is IS curve ? What factors cause a shift in IS curve ? (7Yz)

(b) What is aggregate supply? What are the causes of upward sloping short run
aggregate supply (SRAS) curve? (7Yi)

(c) Explain short-run relationship between the unemployment rate and inflation
rate. (7Yi)

(d) Explain the etlects or change in exchange rate on exports, imports and real
GDP in an economy. (7Yz)

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2. Explain using IS-LM curves, what happens to equilibrium level of aggregate

output (income) and the interest rate when:

(i) Government increases its expenditure.

(ii) Government decreases net taxes.

(iii) Government increases money supply. (5+5+5)

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5361 3

3. What is aggregate demand curVe? How is the aggregate demand curve derived
from the aggregate expenditure schedule when the price level changes in an
economy? (15)

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4. Explain determination of equilibrium GDP and price level in short-run in an

economy. Show the impacts of aggregate demand and aggregate supply shocks
on equilibrium GDP and price level in short run. (15)

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5. What do you mean by inflation? What are causes of inflation? Explain these
using aggregate demand and aggregate supply curves. (15)

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6. Explain classical theory of labour market. What is the shape of aggregate supply
curve according classical theory ? ( 15)

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PTO.
5361 4

7. What do you mean by balance of payments ? Explain components of balance of

payments. (15)

8. Explain the factors that affect exchange rate in an economy. (15)

(9000)