Q.No.2. Differentiate and explain between breakeven point shut down point under perfect compettion during short run period? Also show suitable diagrams.(20)

Q.No.3. In the face of a liquidity trap, which will be more successful-fiscal or monetary policy? Explain in detail. (20)

Q.No.4. How an unanticipated increase in money supply affects the output and price both in the short run and long run periods? Explain in detail. (20)

Q.No.5. Monetarists view is that “rapid inflation must be driven by high money growth”. Explain. (20)

Q.No.6. Saving and consumption decisions of households reflects a plan for an optimal consumption pattern over their lifetime, subject to the constraint of their resources. Explain in detail.(20)

Q.No.7. How a monopolist earn different prices in different markets, depending upon the elasticity of demand? Explain with suitable diagram.(20)

Q.No.8. When exchange rates are fixed and capital is perfectly mobile, will fiscal or monetary policy be more successful? Explain. (20)