Description

MEC-102 Solved Assignment English Medium 2023-24 for July 2023 and January 2024 Session

M.E.C-102

MACROECONOMIC ANALYSIS 

Tutor Marked Assignment (TMA)

Course Code: MEC-102

Assignment Code: MEC-002/2023-24

Total Marks: 100

Note: Answer all the questions.

Section A

Answer the following questions in about 700 words each. The word limits do not apply in case of numerical questions. Each question carries 20 marks.

1. Discuss how an economy achieves equilibrium in the IS-LM model. What do the points outside the IS curve signify? Highlight the factors that influence the IS and the LM curves.
2. Discuss the important features of new-classical macroeconomics. What are the major policy issues highlighted by new-classical economics?

Section B

Answer the following questions in about 400 words each. Each question carries 12marks.

3. Specify a loss function and interpret it. What is meant by dynamic inconsistency?
4. Differentiate between adaptive expectations and rational expectations. Explain why the shape of the Phillips curve changes when we introduce expectations in our analysis.
5. Bring out the factors that lead to rigidity in wages and prices.
6. Describe the importance of public debt in an economy. Under what conditions is public debt not sustainable in an economy?
7. Write short notes on the following.
8. i) Inter-temporal utility maximization
9. ii) New-Keynesian macroeconomics 

MEC102, MEC 102