16.
11
18.

19.
20.
21.
22.
23.

24.
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26.

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2 C 22144

Section B

Answer atleast five questions.

Each question carries 6 marks.

All questions can be attended.
Overall ceiling 30.

Describe the circular flow of income in a two-sector economy.
Explain Keynesian Cross.

What is Say’s Law of markets ? How did classical economists use this law to show that there could
not be involuntary unemployment in the economy ?

Describe the Cash balance approach to the demand for money.
Elucidate the nature and scope of macroeconomics.
Explain the relationship between APC and MPC.
Explain money multiplier.
Explain Marginal Efficiency of Capital. How is it calculated ?
(5 x 6 = 30 marks)
Section C

Answer any two questions.

Each question carries 10 marks.
Discuss the Keynesian theory of demand for money.
Explain methods of measuring national income.
Discuss the Restatement of the quantity theory of money.

Explain the classical theory of interest. Why is the classical theory of interest also known as the

real theory of interest ?

(2 x 10 = 20 marks)

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