10.

2

12.

19.

2 C 30476

Which of the following is not a determinant of autonomous investment ?

(a) Income. (b) Level of technology.

(c) Interest rate. (d) Expectations of future economic growth.
According to —-——— NT is the net aggregate of commodities and services produced by a country
in a year.

(a) Baumo! (b) Alfred Marshall.

(c) Kuznets. (6) Pigou.

Life Cycle Income was proposed by :

(a) Milton Friedman. (9) FrancoModigilani.

(c) J.M. Keynes. (d) J.S. Duesanberry.

The rate of change in income as a result of change in investment, is defined as : சி

(a) MPC. (b) MPS.

(c) Multiplier. (d) Accelerator.

In the long run, the Keynesian aggregate supply curve is :
(a) Downward sloping because product prices are fixed.
(b) Upward sloping because factor prices are fixed.

(c) Vertical because rate of unemployment is fixed.
(d) Horizontal because the price level is fixed.
Who first introduced the concept of Effective Demand ?

(a) J.M Keynes. (b) Pigou.
(€) Thomas Robert Malthus. (d) Alfred Marshall.
If money has no real effect, it is called : ര;
(a) Neutrality of money. (b) Real effect.
(c) Consumption effect. (d) Income effect.

(12 x % = 6 marks)
Part B (Very Short Answer Questions)

ध Answer any ten questions.
Each question carries 2 marks.

Distinguish between Autonomous Investment and Induced Investment ?

14. State Pigou Effect ?