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Q1. Explain the impact of a change in autonomous expenditure on the equilibrium level of income using Investment Multiplier
Q2. Why did the classical economics assume that in a competitive economy full employment will be automatic? On what grounds Keynes questioned this assumption.
3a. From the following data, calculate National Income
Items Rs (in crores)
Private Final Consumption Expenditure 510
Government Final Consumption Expenditure 75
Gross Fixed Capital Information 130
Change in Stocks 35
Exports 50
Imports 60
Consumption of fixed capital 40
Net Factor Income from Abroad -5
Indirect taxes 90
Subsidies 10
3b. Excessive involvement of government in a sector of market affect the other remaining participants of the sector. Comment
Old Assignments
Q1. Explain the Circular Flow of Income in Four Sector Model of Macro Economics (10 Marks)
Q2. Explain Value Added i.e. GDP based Method of Calculation of National Income with reference of Output – Input along with relevant examples. (10 Marks)
Q3.a. Explain Keynesian Criticism on Classical Theories of Economics (5 Marks)
Q3.b. Elaborate Multiplier Concept along with Investment Multiplier of Keynes (5 Marks)
Old June 2021
Q1. Explain the Base and Majour Importance of Macro Economics
Q2. Explain the Two Sector Model of Economy with its Genesis & Circular Flow of Income in 2 Sector Economy.
Q3.a. You are given the following data. Calculate GNP and GDP at factor cost.
GNPMP 600
Indirect Taxes 50
Subsidies 30
NFIA 100
Depreciation 50
Transfer payments 15
Retained Earnings of Companies 25
Personal Taxes 15
Personal Savings 80
Q3.b. Explain Various Assumptions of Classical Macro Economics Theory.
