Programme Code : MEC
Course Code : MEC-002
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Year : 2012 Views: 1411 Submitted By : Ijtaba Hussain On 23rd December, 2012

Do you have solution for this Question. If yes    I aslo want solution.


model with appropriate diagram. Show that

the golden rule of Phelps is not a steady state.

2) Distinguish between adaptive expectations and rational expectations. Explain why the shape of the

Phillips curve changes when we introduce expectations in our analysis.

Section B

3) Policy rules are better than discretionary policies. Justify the above statement in light of new classical


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

a) Inter-temporal utility maximization

b) Real business cycle theory

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