Syllabus T. Y. B. A. Paper : IV advanced economic theory with effect from academic year 2010-11 in idol

 
8.5 QUESTIONS 
1. How IS curve is derived? 
2. How LM curve is derived? 
3. Explain impact of changes in fiscal policy on equilibrium levels 
of income and rate of interest. 

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4. Explain impact of changes in monetary policy on equilibrium 
levels of income and rate of interest. 
5. Efficacy of monetary policy and slope of IS curve 
6. Show how simultaneous equilibrium is reached in goods 
market and money market with the help of IS-LM curves. 
7. What is expansionary fiscal policy? What influences does it 
have on equilibrium output? 
8. Explain the effects of expansionary fiscal policy on private 
investment. 
9. Describe the impact of monetary policy on IS-LM equilibrium. 
10. Examine the Crowding out effect of fiscal policy on private 
investment with the LM curve. 
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9 
 
AGGREGATE DEMAND, AGGREGATE
SUPPLY AND PHILLIP‟S CURVE 
Unit Structure 
9.0 Objectives 
9.1 Introduction 
9.2 Determination of Price Level and Aggregate Output using AD 
and AS curves 
9.2.1 Shift in the MDS and Real Balance Effect 
9.3 Labour Market and Aggregate Supply 
9.3.1 Shift of the Aggregate Supply Curve 
9.3.2 Equilibrium Price Level 
9.3.3 Factors which determines equilibrium price 
9.4 Shift in the MDS and Equilibrium Price OR Effect of Monetary 
and Fiscal Policy on Equilibrium Price in Classical Model 
9.5 Labour Market and Wage Behaviour
9.6 Short Run, Medium Run and Long Run 
9.7 Supply Shock 
9.8 Inflation and Unemployment 
9.8.1 Trade Off Between Inflation and Unemployment
9.8.2 Vertical Long 
– run Phillips
9.9 Summary 
9.10 Questions