Macroeconomics Answers

'Policymakers who can influence AD cannot offset the adverse effects of a recession due to a fall in AS'. Do you agree with statement? Explain your answer in words and using an AD-AS diagram. Brief note

Make a comparative assessment of the consumption behavioural theories of life cycle hypothesis and the permanent income hypothesis.

1. Critically evaluate the consumption behavioural theory of absolute income hypothesis. Brief note

Discuss in details The factors which can cause a currency to appreciate or depreciate. You may use graph to support your arguments

explain the consumption function for a closed economy with a government sector

From the following examples explain which one is expansion of demand and increase

in demanded.

i) Consumers demand more of chocolate ice-cream due to rise in the price of vanilla

ice-cream.

ii) Indian Airlines reduces its airfare by 30% to attract more passengers.