MEC-002 MACROECONOMIC ANALYSIS in English Solved Assignment 2022-2023

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MEC-002: MACROECONOMIC ANALYSIS
Tutor Marked Assignment (TMA)
Course Code: MEC-002
Assignment Code: MEC-002/2022-23
Total Marks: 100

Title Name

MEC-002 Solved Assignment 2022-2023

University IGNOU
Service Type Solved Assignment (Soft copy/PDF)
Course MA(ECONOMICS) MEC
Language ENGLISH
Semester 2022-2023 Course: MA(ECONOMICS) MEC
Session For July 2022 and January 2023 Sessions
Short Name MEC-002
Assignment Code MEC-002/2022-23
Product Assignment of MA(ECONOMICS) 2022-2023 (IGNOU)
Submission Date For July session, you need to submit the assignments by March 31, and for
January session by September 30 for being eligible to appear in the term end examination.Assignments should be submitted to the Coordinator of your Study Centre. Obtain a receipt from the Study Centre towards submission.

 

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Note: Answer all the questions.
SECTION A
Answer the following questions in about 700 words each. The word limits do not apply in
case of numerical questions. Each question carries 20 marks.
1. Explain the concept of steady state growth in the Solow model with appropriate diagram.
Show that the golden rule of Phelps is not a steady state.
2. Differentiate between adaptive expectations and rational expectations. Explain why the
shape of the Phillips curve changes when we introduce expectations in our analysis.
SECTION B
Answer the following questions in about 400 words each. Each question carries 12 marks.
3. Policy rules are better than discretionary policies. Justify the above statement in light of
new classical macroeconomics.
4. Explain in brief the salient features of political business cycle theory.
5. Bring out the factors that lead to rigidity in wages and prices.
6. Explain with appropriate diagrams why an economy with fixed exchange rate cannot
pursue an independent monetary policy.
7. Write short notes on the following.
i) Inter-temporal utility maximization
ii) Real business cycle theory

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