Introductory Macroeconomics
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Old Question Paper
Year: 2006 | Semester: Fall
Pokhara University
Exam 2006 Fall
1. What is macroeconomics? Discuss its limitations. [15]
2. a. What is national income? Does disposable income also represent nation’s output? Explain. [8]
b. What are the practical difficulties of computing National Income? Give reasons. [7]
3. What are the features of the classical theories of employment? How Keynes has criticized them? [15]
4. a. How does the multiplier principle explain the effects of change in aggregate expenditure on aggregate output? [8]
b. Define investment. Explain the determinants of investment. [7]
5. a. Define inflation. What are the major reasons of inflation? [8]
b. Explain the phases of a typical business cycle. [7]
6. Write short notes on: [3×5=15]
a. Liquidity preference theory of interest
b. General equilibrium
c. Investment multiplier
7. Write short notes on (Any Two): [2×5=10]
a. Monetary Policy
b. Fiscal Policy
c. Marginal Efficiency of investment
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