3
10. At the natural rate of unemployment, long run Phillips curve is :
(a) L shaped. (b) Vertical.
(c) Rectangular hyperbola. (d) Convex to the origin.
11. The article “Mr. Keynes and classicals “was written by :
(a) J.R. Hicks. (b) Milton Friedman.
(c) V. Hayek. (d) A.C. Pigou.

12. IS schedule shows :
(a) Relation between money market and interest rate.
(b) Interest rate and national income.
(c) Interest rate and bond market.
(d) None of these.

Section B (Very Short Answers)

Answer at least six questions.

Each question carries 3 marks.

All questions can be attended.
Overall Ceiling 18.

13. What is natural rate of unemployment ?

14. Define sacrifice ratio.

15. What is money multiplier ?

16. Distinguish between structural inflation and cost push inflation.
17. Briefly explain the Okun’s law.

18. What are the important reasons for stagflation ?

19. Distinguish between voluntary unemployment and involuntary unemployment.
20. Distinguish between inside money and outside money.

21. What are the important measures of money supply in India ?
22. What is meant by inflationary gap ?

23. What are the different phases of business cycle ?

24. What are the important determinants of demand for money ?
: (6x3

C 1380

(12 x 1 = 12 marks)

= 18 marks)

Turn over