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FIFTH SEMESTER B.A. DEGREE EXAMINATION
NOVEMBER 2019
(CUCBCSS—UG)
Economics

ECO 5B 07—MACRO ECONOMICS—I
Time : Three Hours Maximum : 80 Marks
Part A (Objective Type Questions)
Write all the twelve questions.
Each question carries ¥% mark.
1. According to Friedman, MPC out of transitory income is :
(a) Zero. (b) One.
(c) 0.5. (d) 0.40.
2. The following concept is not related to classical economics :
(a) Wage- price flexibility. (9) Laissez Faire.
(c) Fullemployment. (d) Interest rate rigidity.
3. According to Friedman, the quantity theory of money is basically a theory of :
(a) Aggregate demand. (b) The demand for money.
(c) National] income. (d) The level of prices.
4, Given the consumption function, C = 205 + 0.9 Y, what is the multiplier ?
(a) 0.09. (b) 10.0.
(c) 0.9. (d) 9.0.
5. When a linear consumption function undergoes a parallel shift downwards, the investment
multiplier will :

(a) Fall. (b) Rise marginally.

(c) Become double. (d) Remain as before.

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