Economics CCE 2013
Dated:13th April 2015

Attempt any Six Questions.

01. Discuss how the following changes would affect the natural (frictional) rate of unemployment:
(a) Elimination of unions
(b)Increased participation of teenagers in labor market
(c)larger fluctuation in the level of aggregate demand
(d)Increase in employment benefits
(e)Elimination of minimum wages
(f)Larger fluctuations in the composition of aggregate demand

02.What costs are associated with perfectly anticipated inflation? Do these changes as rate of inflation changes.

03.Explain the relationship between Income , Consumption and Saving. define also their importance in the Economic Development of a country?

04.How does money flow in four sector economy? Illustrate with the help of diagram.

05.
(a) Define elasticity of Deamnd.
(b)If Q=300-3p-0.2p2 and p=30
find out the elasticity of demand.

06.When in money neutral in the Keynesian system? Explain mathematically as well as graphically.

07.Professor Andrei Anikin believes that Adam Smith would have agreed with the statement by Gorbachev and Ryzhkov . Does that mean that market and command economies have any similar deficiencies?

08.In the light of recent experiences asses the arguments for and against public ownership?