Delhi University
Macro-Economics Analysis and Policy External Correspondence Previous Year Question Paper Year 2005 : IInd Year
Q. 1. (a) Explain Keynes’ Psychological Law of consumption.
(b) Find out MPC and MPS if consumption increases from 680 to 760 with an increase in income from 800 to 900, 15, 5
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Q. 2. (a) How is the equilibrium level of income determined at the point where saving equals investment ?
(b) Find out equilibrium level of income. If I = 100 and consumption function is C = 100 + .8y 15, 5
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Q. 3. Explain the concept of investment multiplier and show its relation with MPC. 20
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Q. 4. Critically examine Quantity Theory of Money. 20
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Q. 5. Distinguish between cost-push and demand-pull inflation. Suggest ways to control cost-push inflation. 10, 10
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Q. 6. Explain the functions and role of commercial banks in a developing country.
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Q. 7. What are the functions of a central bank ?
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Q. 8. What do you mean by incidence of tax ? Explain with suitable diagram the incidence of unit tax under monopoly.
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Q. 9. Discuss the causes of growth of public expenditure in India.
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Q. 10. Write short notes on :
(a) Balance sheet of a Commercial Bank;
(b) Recommendations of 11th Finance Commission.
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