Prepare yourself- Macroeconomics

1. How Money is instrumental in removing drawbacks of barter system.

2. Explain the Redistributive activity objective of government budget.

3. Differentiate between Revenue expenditure and Revenue receipt.

4. Give the meaning of following

      Fiscal deficit, Revenue deficit, Primary deficit and Budget deficit

5. What does large Primary deficit indicate?

6. Explain the Problem of Double coincidence of wants and how money has solved this problem.

7. What is Problem of double counting? How can it be avoided?

8. Determine the equilibrium level of income output and employment with the help of AD=AS approach. Using diagram and schedule.

9. Equilibrium is determined where planned saving is equal to planned investment. Explain this statement using schedule and diagram.

10. Differentiate between following

1.     Domestic income and National income

2.     Private income and National income

3.     Final goods and Intermediate goods

4.     Net factor income from abroad and net current transfers from abroad

11. Explain the following objectives of budget

1.     Reallocation of resources

2.     Economic stability

12. Classify the following in to revenue receipts and capital receipts with reasons

1.     Interest earned by Government from its investment

2.     Selling of share of public sector enterprises

3.     Recovery of old loans

4.     Financial help received from abroad

5.     Borrowing from abroad

13. What do you mean by deficient demand .How can it be removed by fiscal policy measures.

14. What do you mean by excess demand or inflationary gap? Suggest two monetary measures to reduce it.

15. Why the demand curve for foreign exchange is downward slopping.

16. Why there is direct relationship exists between foreign exchange rate and its supply.

17. Differentiate between Balance of payments and Balance of trade.

18. Write any three sources each of demand and supply of foreign exchange.

19. Explain the following functions of central Bank

1.     Sole authority to issue currency notes

2.     Banker to the government

3.     Controller of credit in the economy

4.     Lender to the last resort.

20. What are the limitations of GDP as indicator of welfare?

21. How Price level, level of employment and non- monetary transactions in the economy challenges GDP as true index of welfare.

22. How commercial banks create new deposits from initial deposits.

23. What do you mean by investment multiplier? Explain its working.

24. Explain the following

   1. Expenditure method

   2. Income method

   3. Value added method