ECO403 Current FinalTerm Paper 29 August 2016

Total questions 55.
46 MCQ’s and rest are below: 

Q1. Define the term “Human capital” (3marks)

Q2. Keeping in view the IS-LM framework & aggregate demand, suppose economy faces negative IS shock, in which direction the IS curve & aggregate demand curve will shift? (3marks)

Q3. Let the life cycle consumption function is C=0.07 W+ 0.05Y, if W=1000 & Y=2000, calculate the amount of total consumption (3marks)

Q4. Suppose budget deficit was Rs.27billion & govt. debt was Rs.175 billion & inflation was 7%, by using this info. Calculate by how much amount the budget deficit was overstated? (3marks)

Q5. Graph was given & discuss the graph keeping in view slow growth model (5marks)

Q6. Suppose MPC for Korean company is 0.7. Calculate govt. purchases multiplier & tax multiplier (5marks)

Q7. Discuss graphically the impact of decrease in money supply on the IS-LM framework (5marks)

Q8. Write down the Keynesian consumption function. Also explain the consumption functions with the help of diagram.

Q9. The Cobb-Douglas production function is Y=AKaL1-a. Define each component of this function. (5marks)