|Course Code :||MEC-002|
|Course Title :||Macroeconomic Analysis|
|Program :||MA Economics / MEC|
|Max Marks :||100|
|Session :||July 2020 and January 2021 (2020-21)|
|Last Date of Submission :||15th March, 2021 (for July 2020 session)
15th September, 2021 (for January 2021 session)
|Solution Type :||Softcopy (PDF File)|
TUTOR MARKED ASSIGNMENT
MEC-002: MACROECONOMIC ANALYSIS
Course Code: MEC-002
Assignment Code: MEC-002/2020-21
Total Marks: 100
Note: Answer all the questions. While questions in Section A carry 20 marks each (to be answered in about 500 words each) those in Section B carry 12 marks each (to be answered in about 300 words each). In the case of numerical questions word limits do not apply.
1. Derive the conditions for steady state growth in the Solow model. What are its implications? In what respects is the golden rule different from the steady state?
2. What are the implications of IS and LM curves? What are the factors on which the position and the slope of IS and LM curves depend?
3. What does the Phillips curve signify? How do you reconcile the difference in the shape of the curve in the short run and the long run?
4. From Lucas’ point of view, what are the limitations of the Keynesian model? What improvements does he suggest?
5. Bring out the salient features of the endogenous growth theory.
6. Explain the mechanism through which internal and external balance takes place under flexible exchange rate.
7. Write short notes on the following:
a) Permanent income hypothesis
b) Rational expectations and adaptive expectations