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
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 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
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 national income deflator for various … Read more