D 40199 (Pages : 3) | ००

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SIXTH SEMESTER B.A. DEGREE EXAMINATION, MARCH/APRIL 2018
(CUCBCSS—UG)
Economics
: ECO 6B 11—MACRO ECONOMICS-II
Time : Three Hours Maximum : 80 Marks
Part A
Answer all questions.
Each question carries % mark.

1. IS function shift forward, when investment function shift :
(a) Forward. (b) Backward.
(c) Remain the same. (d) None of these.

2. An increase in the money supply have no effect upon equilibrium income, if :
(a) LMis steeply sloped and IS is relatively flat.
(b) LMis steeply sloped and IS is vertical.
(€) LMis vertical and Isis steeply sloped.
(d) LMis relatively flat as the IS.

3. It is impossible to increase the level of Output due to monetary policy, if the LM curve is :
(a) Perfectly elastic. (b) Perfectly inelastic.
(c) Relatively elastic. (d) Relatively inelastic.

4. Ceteris paribus, in the neoclassical ISLM model, fiscal policy leading to the forward shifting of IS
schedule cannot alter the level of real national output due to :

(a) Price rigidity. (b) Crowding out effect.

(c) Increased taxation. (d) Constant interest rate.
5. When there is a recession plus a high inflation rate, it is :

(a) Stagnation. ൯) Stagflation.

(c) Augmented inflation. (d) Repressed inflation.