Wednesday, August 18, 2010

ECO401 Final Paper 2010

10 to 12 MCQ’s were from current papers remaining were new.



Subjective Q’s were as follows.



It is said that growth is an important macroeconomic issue. Why? Discuss. 3



Explain the money demand curve with the help of diagram? 3



If y = Y / L, where, Y = Total GDP, L = Population, y = per capita GDP then prove that Growth rate of per capita income = Growth rate of total output - Growth rate of population. 5



Discuss the equilibrium in money market and explain with the help of diagram? 5



If government increases spending e.g., increases the wages of government servants, how it will affect the consumption, production and hiring of new employees? 5

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