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The document provides instructions for a macroeconomics assignment. Students must attempt 10 questions from the provided set on topics such as national income, credit creation, interest rates, private saving, GDP calculation, and more. The submission should be in hard copy format by April 10, 2024 and include their name, roll number, and date on the first page.

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Rishabh Jain
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Download as PDF, TXT or read online on Scribd
18 views

ASSIGNMEN1 Eco

The document provides instructions for a macroeconomics assignment. Students must attempt 10 questions from the provided set on topics such as national income, credit creation, interest rates, private saving, GDP calculation, and more. The submission should be in hard copy format by April 10, 2024 and include their name, roll number, and date on the first page.

Uploaded by

Rishabh Jain
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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ASSIGNMENT

MACROECONOMICS
Instructions:
The assignment submission deadline is April 10, 2024.
Attempt a total of 10 questions from the provided set.
Each question should be clearly mentioned followed by your answer.
Use A4 size sheets for your submission.
Include your name, roll number, and the submission date on the first page of your
submission.
Ensure your handwriting is legible and the content is organized neatly.
Only hard copy accepted.
Note: Failure to adhere to the submission guidelines may result in a deduction of marks
or other penalties.

1) Distinguish between National income at constant prices and national income at current
prices
2) How do commercial banks create credit in multiple banking system? what are the
limitations of credit creation?
3) Explain the impact on interest rate
a) first part change in the price levels
b) change in the level of national income.
4) What are the uses of private saving?
5) The following Data is given for two years output and prices for an economy 2011 2012
2011 2011 2012 2012
commodities prices output prices output
A 10 60 16 100
B 6 80 12 140
the nominal GDP, real GDP and GDP deflator taking 2011 as base year.
6) Calculate National Income

Items (₹ in crore)

i) Compensation of employees 2,000

ii) Profit 800

iii) Rent 300


iv) Interest 250

v) Mixed income of self employed 7000

vi) Net current transfers to abroad 200

vii) Net Exports – 100

viii) Net indirect taxes 1,500

ix) Net Factor income to abroad 60

x) Consumption of fixed capital 120

7) Find GDP at Market Price.

Items In Rupees

Value of output of a primary sector 2000

Intermediate consumption of the secondary sector 800

Intermediate consumption of the primary sector 1000

Net factor income from abroad -30

Net indirect tax 300

Value of output of the tertiary sector 1400

Value of output of a secondary sector 1800

Intermediate consumption of the tertiary sector 600

8) What are the main causes of inflation, and how does it affect the overall economy?
9) How does unemployment impact consumer spending and economic growth?
10) What are the key indicators used to measure economic growth, and how are they
calculated?
11) How do changes in fiscal policy, such as tax cuts or increases in government spending,
impact aggregate demand and economic output?
12) What is an autonomous variable? What components of aggregate demand have we
specified in the sallybus , as being autonomous?
13) What is the role of the central bank in managing monetary policy, and how does it affect
interest rates and inflation?
14) C=200+0.5YD
YD= Y-TAX
T=0.2Y
I=100
G=200
TR=100
a) Calculate the equilibrium level of income and the multiplier in this model.
b) Calculate the budget surplus(BS)
15) Compare and contrast the classical and Keynesian schools of thought for the following
economic issues.
(a) The flexibility of wages and prices.
(b) The importance of macroeconomic policies
16) let the consumption function be given by C = 1000 + 0.6 Yd, T =400, I = 500, G = 300
where I is investment, G is government expenditure, T is taxes and Yd is disposable
income in rupees crore. show the equality of leakages and injections buy calculating the
value of leakages and injections.
17) Derive the expression of balanced budget multiplier with lum-sum tax function.
18) discuss the saving investment approach to determine the equilibrium level of income.

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