Ques 1.

State the basic assumptions of the Solow model. Derive the condition for steady state level of capital stock in an economy. 

Ques 2.

Explain how an economy converges to a steady state growth path in the Romer model of endogenous growth.

Ques 3.

Discuss the important features and various phases of business cycles.

Ques 4.

Explain how the multiplier and the accelerator interact to generate business cycles.

Ques 5.

Describe how the permanent income hypothesis attempts to resolve the Kuznets’ puzzle on consumption function.

Ques 6.

Explain the concept of loss function. How does the shape of the function change according to perception of inflation and unemployment by the Central Bank?

Ques 7.

State the major inferences on policy that we can draw on the basis of new-classical economics.

Ques 8.

Describe the various channels of monetary transmission mechanism.

Ques 9.

Discuss the implications of portfolio balance approach to risk and return.

Ques 10.

Write a short note on the characteristics of residential investment.