S. Y. Bcom Sem- III Regular & ATKT OCT - 2023 Business Economics PDF

## SKM's J. M. Patel College of Commerce, Goregaon, Mumbai **Semester III Regular & ATKT Examination - October 2023** **Program:** SYBCOM Commerce III **Course:** Business Economics **Semester:** III **Marks:** 100 **Duration:** 3hrs **Note:** * All questions are compulsory and they carry equal...

## SKM's J. M. Patel College of Commerce, Goregaon, Mumbai **Semester III Regular & ATKT Examination - October 2023** **Program:** SYBCOM Commerce III **Course:** Business Economics **Semester:** III **Marks:** 100 **Duration:** 3hrs **Note:** * All questions are compulsory and they carry equal marks. * Draw neat diagrams wherever necessary. ### Q.1 **(10 marks)** A) Explain the following concepts (Any Five) 1. Macroeconomics 2. IS curve 3. Demand Pull Inflation 4. Recession 5. Investment Multiplier 6. G.D.P 7. Transaction Motive 8. Aggregate Demand B) Fill in the blanks (ANY 10) **(10 marks)** 1. The following is not a subject matter of macroeconomics * (national income accounting, law of demand and supply, business cycle, general price level) 2. The level of investment in an economy depends upon ______ * (price level, rate of inflation, MEC and rate of interest, fiscal deficit) 3. Which of the following is a cause of demand-pull inflation? * (Deficit financing, Increase in wages, Increase in fuel prices, Increase in interest rate) 4. The inverse relationship between market rate of interest and bond prices is due to ______ * (money supply being constant in the short run, high opportunity cost of holding cash at a high rate of interest, increased credit creation by banks, imperfections in the bond market) 5. The point where AD and AS intersect is called ______ * (total demand, effective demand, equilibrium demand, non-equilibrium demand) 6. Precautionary demand for liquidity is determined by ______ * (rate of interest, rate of inflation, bond prices, income) 7. When income equals consumption, savings will be ______ * (positive, zero, negative, infinity) 8. Which of the following economy deals with the rest of the world? * (Closed, Open, Only developed, Only developing) 9. The value of multiplier is inversely related to ______ * (MPC, MPS, APC, APS) 10. In long run, Philip's curve will be ______ * (upward rising, downward sloping, horizontal, vertical) 11. The L.M curve indicates ______ equilibrium * (money market, goods market, foreign market, labour market) 12. Monetary policy may not be very effective during depression due to ______ * (high MEC, low MEC, high degree of liquidity, high rate of interest) ### Q.2. **(20 marks)** Answer **any two** of the following questions. 1. Explain the circular flow in a closed economy with assumptions - two sector model without savings. 2. What do you mean by Macroeconomics? Discuss the different school of thoughts. 3. Discuss Say’s Law of the market, with the help of a diagram. ### Q.3. **(20 marks)** Answer **any two** of the following questions. 1. Explain the consumption function in a linear form. 2. Write a note on the working of the multiplier with the help of a diagram. 3. State the determination of equilibrium level of investment by MEC and rate of interest. ### Q.4 **(20 marks)** Answer **any two** of the following questions. 1. Derive the IS curve. 2. What is Stagflation? Discuss some of its causes. 3. With the help of diagram explain supply side economics. ### Q.5 **(20 marks)** Answer **any two** of the following questions. 1. Explain the determinants of money supply. 2. With the help of diagram explain demand pull inflation. 3. Discuss in brief Friedman's Theory of demand for money. ==End of OCR==