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Q1. Derive the Government Expenditure Multiplier in the IS-LM framework and describe that it is smaller than the Simple Keynesian Model. Describe why?

Q2. Sketch and describe the shape of Aggregate Supply and aggregate demand in:

a) Short Run
b) Long Run.

Q3. Describe the method of adjustment and movement from short run equilibrium to a long run equilibrium.

Q4. In Loanable Funds Theory of interest rates:

a) Show that the impact of an increase in government expenses on real interest and loanable funds.

b) Show that the impact of a fall in the savings.

Q5. prepare detail notes on (any two):

a) Demand shock and its Input
b) Okums law
c) Components of aggregate demand
d) Crowding out effect

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M912750

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