M.com Part 1 (Semester 2) MACROECONOMIC Most Important Question Bank for Current Exam 13. Write a note on the collapse of the Phillips Curve Hypothesis. ANS: The Phillips Curve hypothesis was accepted as a cure to increase the level of employment and income in the sixties. It became a macroeconomic tool to explain the trade-off between inflation … Read more
M.com Part 1 (Semester 2) MACROECONOMIC Most Important Question Bank for Current Exam 11. Explain the concept of Human Development? ANS: The UNDP Human Development Report 1997 describes human development as “the process of widening people’s choices and the level of well-being they achieve are at the core of the notion of human development. Such theories are neither … Read more
SEMESTER – II MACROECONOMIC 10. EQUILIBRIUM LEVEL OF EMPLOYMENT OR Equilibrium Level of Employment and Real National Income. Increase in the level of Employment& Real National Income. Limitations of the Keynesian Theory of Employment ANS: The equilibrium level of employment and real national income is determined at the point of equality between the aggregate … Read more
SEMESTER – II MACROECONOMIC 8. Explain the criticisms of HDI. ANS: The Human Development Index has been criticized for failing to include any ecological considerations, focusing exclusively on national performance and ranking (although many national Human Development Reports, looking at sub-national performance, have been published by UNDP and others—so this last claim is untrue), not paying much attention to development from … Read more
SEMESTER – II MACROECONOMIC 5. Explain the concept of purchasing power parity income ANS: The purchasing power parity theory of exchange rate determination was put forward by Professor Gustav Cassel of Sweden in the year 1920. There are two versions of the PPP theory known as the absolute and the relative versions. According to the absolute version, … Read more