15.
16.
17.
18.
19.
20.
- 21.
22.
23.
24.

25.
26.
27.
28.
29.
30.
31.
32.

APC and MPC.
Tax multiplier.
Real balance effect.
Life cycle hypothesis.
Ratchet effect.
Neutrality of money.
Marshall’s equation.
GDP.
Stock and flows.
Equilibrium and disequilibrium.
(6x3
Section C (Short Essay Type Questions) ۱

Answer at least four questions.

Each question carries 6 marks.

All questions can be attended.
Overall ceiling 24.

Explain static and dynamic analysis in macro economics. .
Explain the income method of measuring national income.
Explain Says law of market.

Explain MEC and MEI.

Explain inflationary and deflationary gaps.

Explain absolute income hypothesis.

Briefly explain Keynesian theory of employment.

What is fiscal policy ? Explain its objectives.

D 90351

= 18 marks)

(4 x 6 = 24 marks)

Turn over