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2 C 82485
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,

Explain the major pillars of classical economics.
Write a note on Cambridge cash balance approach.

Explain the following concepts :

(a) GDP.
(b) GNP.
(८) 20൬.

(0) Disposable Personal Income.-
What are the important factors determining consumption ?
Write a note on High Powered Money.
What are the important determinants of investments ?
Explain inflationary and deflationary gaps with suitable diagrams.
Distinguish between Classical and Keynesian theories of output and employment:
Section C (Long Essay Questions)

Answer any two questions.
Each question carries a maximum of 10 marks.

Explain the macroeconomic situation for the Keynesian revolution in economic theory and policy.
Explain the Keynesian Liquidity Preference theory of interest with suitable diagrams.
Explain the methods and problems in estimating national income.

Explain Friedman's re-statement of Quantity Theory of Money.