Maharaja Agrasen College/ Department of Business Economics / Paper 401 Macro-Economics II / B.A. (Hons.) VI th Semester Internal Exam

Time: 1:30 hours                                                                                 Maximum Marks: 15

All questions are compulsory.

All questions carry equal marks.

1.      Write short notes on any two:                                                         2½ *2

a)   Tobin q

b)  J Curve

c)   Random Walk Hypothesis

2.     Discuss the evidence that were consistent with Keynes conjuncture and which were not consistent with them.                                              5

3.     Explain the life cycle hypothesis and discuss how life cycle hypothesis attempts to reconcile between short run variability and long run consistency of consumption?                                                                5

4.     In essence the rental price of capital approach to investment is not fundamentally different from Tobin q. Explain.                                5

Question Paper MACROECONOMICS II

Question Paper MACROECONOMICS II

Minutes of Meeting (Paper 641 (E2) Economic Growth and Policy

BBE TIME TABLE EVEN SEMESTER

MACRO ECONOMICS II

Syllabus ECONOMIC GROWTH & POLICY

Semester VI

Optional Group E: Paper 641

ECONOMIC GROWTH AND POLICY

UNIT 1 : ECONOMIC DEVELOPMENT- DEFINITIONS AND CONCEPTS

• A Very Short Introduction (AVSI), Characteristics of Development pp 1-29

• Development Economics, Chapter-2

• Distinction between Growth and Development

• Economic Development, Michael. P. Todaro, Chapter 1 and 2

UNIT 2 : GROWTH MODELS

• DE, Chapter-3 Economic Growth, Section-3.3.1(pp 51-56) and

Section 3.5 (pp 74-84).

• DE, Chapter 10, pp 353-371 (LEWIS MODEL)

• Introduction to Economic Growth pp20-53 (THE BASIC SOLOW MODEL)

• Endogenous Growth Model : Jones

Note- Solow Model shall be covered before Convergence (Section 3.5)

UNIT 3 : HUMAN CAPITAL- EDUCATION, INTELLECTUAL CAPITAL &

POVERTY.

• Meier pp 450-459 (Education investment in Human Capital)

• Michael P Todaro , Economic Development, Chapter 9 (Human Capital : Education

& Health n Economic Development)

• Concept of relative and absolute poverty, Sen

• Income inequality and its measurement, world experience in this context

UNIT 4 : TECHNOLOGICAL PROGRESS

• Introduction to Economic Growth Chapter 4 & Chapter 5 (up till Page 110)

• Development Economics, Chapter 4 , Section 4.4.4 & 4.4.5

• Growth and Development, A.P Thirwall Chapter 14 (up till page 499) also

included are pp 525 -536

• Meier, Section VIII, pp 381-405 (International Trade and International Inequality)

UNIT 5 : STATE AND THE MARKET

• F Hayami , Chapter-8 (up till page 212) and also included are pp 233-239

Experience of South East Asia And Latin America Countries in this context could

be useful.

References:

• Debraj Ray, Development Economics, DE, Princeton University Press 1998

• Charles Jones, Introduction to Economic Growth, Second Edition

• Partha Dasgupta, Economics: A Very Short Introduction, Oxford University Press,

2007

• Meier, Leading Issues in Economic Development, 5th edition

• Michael.P.Todaro, Economic Development,8th edition.

• F Hayami, Economics (as per the previous syllabus)

• A.P Thirwall, Growth and Development ,7th edition