oct Le GOODLEY py pte 6 ee UNIT ppg pt 2025 cL Et sg (OM 7 ‘Time: 11/2 Hrs. ECONOMICS OO" 4 gximum Mark GENERAL INSTRUCTIONS: 1. This question paper contaii Section A ~ Macro Econom 2. Allotted marks for each question are giyon ait it 3. This paper contains 10 multiple-choice yuestons oF OL This paper contains 04 short answer questions of 03 matt 40to 60 words. 5. This paper contains O4short answer questions of O4 marks each should be 80 to 100 words. i 6 This paper contains 02 long answer questions of 06 marks each should be answered in 100 to 130 words. Numerical questions have no word limit only one gectio™ mark each. ks each should be answered in answered in QT To reduce credit av aailability in the economy the central bank may a) Buys securities in the open market b) Sell securities in the open market OF Reduce reserve ratio d) Reduce repo rate If MPS is 0.25 and initial change in investment 250 crores than the final change in income would be a) 1000crores b) 1200crores ©) 500crores d) 3500 crores QF What is the value of multiplier when saving function is represented as S=-60+0.2 Y a) 2 b) 5 °. 4 d) 1.25 __when the value of MPC is b) Infinit c) one, Infinity d) None of theseve a value sense negative mile The value of __— equal to one. a) APS. APC b) MPC. APS ©) APC, APS d) MPS, APC eason(R), cboose the COMES! nal income. income Read the following statements: Asserion(A) and altemative among these given below ‘Assertion(A): At Break -Even Point. consumption is equal t Reason(R): APC falls continuously with increase in income ‘spent on consumption keeps on decreasing. . a) Both Assertion(A) and Reason( 2) are True and Reason (R) is the explanation of assertion(A), b) Both Assertion( A) and Reason! 2) are True and Reason (R ) is not the correct explanation of assertion(A). ©) Assertion (A) is True but Reasea (R) is False. d) Assertion (A) is False but Reason (R) is True. o natio ve proportion of correct ey If MPC=MPS, the value of multiplier is: ao bt 2 4) Infinity (Qs Read the following statements and choose the correct alternative among those given below: Statement |; Consumption curve starts from the origin. Statement 2: Consumption curve slopes downwards because consumption decreases with increase income. Alternatives a) Both the statements are true b) Both the statements are false ¢) Statement | is true and statement 21> false d) Statement 2 is true and statement 1 > false Read the following statements: AssertiO™A) and Reason(R, alternative among these given below: : ae ‘Assertion (A): During excess demand. there is no Reason(R): At the time of excess demand, there tn the level of employment, ‘8 no involuntary unemp a) Both Assertion(A) and Reason(R)° True and R, of AD ‘eason (R ) is the correctS -ason (R ) is not the correct b) Both Asserton(A) and Reason(R) ae #4 Re explanation of assertion(A) €) Assertion (A) is true but Reason (R) is Fals® d) Assertion (A) is false but Reason (R) is (U° an ‘ve among those GAT Read the following statements and choose the correct alternath 3 en below: Statement 1: APS can be negative, zero oF positive Statement 2: APS rises with increase in income. Alternatives: a) Both the statements are true b) Both the statements are false ©) Statement 1 is true and statement 2s false 4) Statement 2 is true and statement Lis false. (10x1=10) Q-tT__ Differentiate between autonomous investment and induce investment. @) Q2 An economy is in equilibrium. From the following data about an economy, calculate Autoriomous consumption. INCOME % 5000 er MPS 0.2 INVESTMENT = 800 er OR Qi S€ the basis of consumption function C=120+0.40Y, answer the following questions: (i) Derive the saving function, (ii) Determine the saving at the income level of 500 crores, (ili) At what level of income, savings becom s zero? B) Giving reasons, state whether the following statements are true or false: _a) With increase in national income both APC and APS fall. b> Equilibrium beyond the full employment level does not lead to rise in output level “€)_ Value of investment multiplier varies between zero and infinity. QB) Q-t4~ “Full employment means zero unemployment”. Defend or Refute, give reason. (3) QTS Discuss the working of the adjustment mechanism in the following situations: _a) If Aggregate demand is greater than Aggregate supply. ““) If Ex Ante investments are less than Ex-ante Savings. (4) -Q+6~ In an economy the consumption function is C=200+0.75Y, If planned investments are Rs500 crores. Calculate <@) Equilibrium level of national income, by Calculate the value of savings at equilibrium level of National income .re ‘libri slof National income #2) Caleulat consumption expenditil at equilibrium level of Nat alculate cons vii 4)Caleulate the value of Investment Multiplier. . OR ¢ and pC and IPC , TI s of which can be zero Dyerentiate between APC and {PC , The value of a) when? e. E: the O17 Draw a straight-line consumption curve, From it derive a saving curve Explain process of derivation, Show in the diagram: 8%) The point at which the APC is equal to one, by Any point at which APS A) negative, SPI Deine Aggregate Demand Explain tne Components of Aggregate Demand.(4) _Q-19— Assuming that inerease in inv working of investment multipl tment is RS.1,000erore and MPC is 0.9 explain the (6) 020° Explain the concept of inflationary gap with the help of a diagram .Explain how the following measures helps in correcting this gap: a) Reverse Repo Rate b) Legal Reserve Ratio Or Refine Deficit Demand. Explain Any \wo fiscal policy measures and two monetary policy measures to correet the deficit «jemand, (6)