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ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Economics)
WARNING
1.
PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING
THE ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD
OF DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE’S OWN WILL BE PENALIZED AS DEFINED IN
“AIOU PLAGIARISM POLICY”.
Course: Introduction to Macroeconomics (802)
Semester: Autumn 2016
Level: M.Sc Economics
Total Marks: 100
Credit Hours: 03
Pass Marks: 40
ASSIGNMENT No. 1
(Units: 1–5)
Q.1 Distinction between intermediate products and investment goods. Why are they
treated differentially in national income accounting?
(20)
Q.2 Differentiate between the following concepts.
(20)
i. Inflationary and Recessionary Gap
ii Net National Product and Net Domestic Product
ii Statics and Dynamics
iv Rigid Money Wages and Flexible Money Wages
v Balanced and Unbalanced Budget
Q.3 Explain the relationship between the production function and the demand for labor
function.
(20)
Q.4 Critically evaluate the implications in the process of deposit expansion and
contraction.
(20)
Q.5 Suppose the economy is experiencing high rate of unemployment. Based on the ISLM analysis, what policies might be recommended to solve the problems?
(20)
ASSIGNMENT No. 2
(Units: 6–9)
Total Marks: 100
Pass Marks: 40
Q.1 Discuss the difference between micro and macro analysis of consumer behavior in
detail.
(20)
Q.2 Explain the process of shifts in marginal efficiency of investment (MEI) and
marginal efficiency of capital (MEC) schedules and also explain how these shifts
affect the interest- rates?
(20)
Q.3 How do the assumptions underlying Harrod’s theory differ from those underlying
neoclassical theory of economic growth?
(20)
Q.4 Suppose food prices are increasing rapidly. Should aggregate demand be reduced to
check the increase in prices? Explain your answer.
(20)
Q.5 Write notes on the following:
(10+10)
a)
Economic Effects of Inflation b)
Supply Side Inflation.