JGU Id. No.

______________

O.P. Jindal Global University

Jindal School of Liberal Arts and Humanities
End-term Examination – Semester __

Course Name : Applied Macroeconomics

Course Code : LH-M-E06

Programme : JSLH
Session : 28th May – 29th May
Time Allowed :
Maximum Marks : 50

This question paper has ____ ( __ ) printed pages (including this page).

Instructions to students:

1. DO NOT write your Name and Student Id. No. anywhere on the answer book except on the space
provided.
2. DO NOT write anything on the question paper except Student Id. No. on the space provided.
3. Start each question on a new page.
4. Use of mobile phone or any electronic storage and access system is prohibited.
5. Students undertaking the examination are requested to adhere to the University norms related to
examinations.

_________________________________________________________________________________________
This is a Open Book examination. (Please mention the material allowed in the Examination Hall, if any)

Warning: Plagiarism in any form is prohibited. Anyone found using unfair means will be penalized
severely.
Attempt All questions.
JSLH [End-term Examination - Semester ___ , 2021] Page 1
 1) Use the IS–LM diagram to describe both the short-run effects and the long-run effects of the following
changes on national income, the interest rate, the price level, consumption, investment, and real
money balances.
a) An increase in the money supply
b) An increase in government spending (Marks : 15)

2) Assume that due to the COVID crisis there has been a severe supply shock? Can the Reserve bank of
India deal with such a shock in an effective manner. Explain with the required diagrams. ( Marks : 20)

3) Suppose as a policy maker you have to analyse three measures of fiscal stimulus for reducing the
impact of the COVID crisis. First measure is an increase in government purchases. Second is decrease in
taxes . Third scenario is to do equal size increase in both government spending and tax reduction. What
is the impact on GDP explain using the Keynesian cross. (MARK : 15)

JSLH [End-term Examination - Semester ___ , 2021] Page 2