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33.
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4 C 1380
Section C (Short Essays)

Answer at least four questions.

Each question carries 6 marks.

All questions can be attended.
Overall Ceiling 24.

Explain the classical theory of demand for money.
Discuss the Keynesian motive for money holding.
Discuss the shortrun and long run Phillips curve.
Briefly discuss the Hawtreys’s theory of trade cycle.
What is BP curve ? Analyze the shift in BP curve ?
Critically examine the restatement of Quantity theory of money.
Distinguish between money and near money. What are the important functions of money ?
Discuss the Keynesian liquidity preference theory of interest.
(4 x 6 = 24 marks)
Section D (Essays)
Answer any two questions.
Each question carries 13 marks.

Critically examine the modern theories of inflation.
What is meant by trade cycle ? Discuss the Hayek’s theory of trade cycle.
Analyze the equilibrium of a two sector economy using the IS-LM model.
What are the important fiscal, monetary and other policy instruments to counter inflation ?

(2 x 13 = 26 marks)