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2 C 41292
Section B (Short Essay Questions)

Maximum marks in this section is 35.
Students can attempt all questions.

Each question carries a maximum of 5 marks.
What are the properties of IS curve ?
What are the factors to cause a shift in LM curve ?
Critically examine the Okun’s law.
What are the different phases of business cycle ?
Critically examine the short run and long run Phillips curve.
What are the important measures to control inflation?
Critically evaluate the inflation measurement procedure adopted by India.
Discuss the reasons for the stagflation of 1970s.

Section C (Long Essay Questions)
Answer any two questions.

Each question carries a maximum of 10 marks
Examine the effectiveness of fiscal and monetary policy in goods and money market equilibrium.
Compare and contrast the Hawtrey’s and Hayek’s theory of business cycle.
Discuss the need for the simultaneous use of fiscal and monetary policies to combat inflation.

What are the different types of unemployment ? Discuss the various tools and also difficulties in
the measurement of unemployment.
(2 x 10 = 20 marks)

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