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Explain the dynamics of financial crisis.
What is inflation targeting? Elaborate its usefulness in the short-run and the medium-run.
Since the effects of policy are uncertain, more active policies lead to more uncertainty.
Explain this statement in the context of using monetary policy as a tool to expand output
during recession.
Q1. Marginal utilities of goods A and B are 600 and 900, and the price of good B is Rs.120. If the consumer is in equilibrium, the price of good A is
Q2. The utility function of a consumer is U = 12X1.5. If the price of the good is Rs.63 per unit, the consumer would consume.
Q3. The demand function for a good in Hyderabad is estimated to be Q = 34 – 2P. The theoretical maximum quantity of good demanded is
What is inflation targeting? How the target inflation rate can be achieved by central banks
using Tylore rule?
“Inflation is always and everywhere a monetary phenomenon”. Discuss.
Discuss the Real Business Cycle model. Does the global economic crisis of 2007-09
support this model?
Critically analyze the New Keynesian approach to explain business cycles.
“According to New Keynesians small nominal rigidities have large macroeconomic effects”. Discuss the above statement.
3. Marginal utilities of goods A and B are 600 and 900, and the price of good B is Rs.120. If the consumer is in equilibrium, the price of good A is
