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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
M.Com SEMESTER – II MACROECONOMIC 1. Q.3. Explain the concept of National Income Deflator. ANS: When we divide nominal national income by real national income, we obtain the national income deflator. The real national income can be calculated by dividing nominal national income by the national income deflator. The [...]