demand of four sector economy

ECO 303

Important questions

Lecture # 8:

  • What is rate of interest?
  • How rate of interest is determined?
  • Define liquidity preference?
  • At which point, the rate of interest is determined?
  • When liquidity trap work?
  • Write the criticisms of Keynes theory of interest rate?

Lecture # 9:

  • What is business cycle & write its duration?


What is business cycle and write its main features and characteristics?

  • Define capital output ratio? With formula.
  • Name the counter cyclic measures?

Lecture # 10:

  • Difference b/w monetary and fiscal policy?
  • What are the main objectives of monetary policy?
  • Define stagflation and write its causes?
  • What is Phillip’s curve?

Lecture # 11:

  • Role of fiscal policy in national income determination “is an important topic for long and short questions.

Lecture # 12:

  • Define theory of comparative advantage?
  • What is international trade?
  • Criticisms of classical theory of comparative advantage is a long question.
  • Who present factor endowment theory and also explain this theory?

Lecture # 13:

  • How we get aggregate demand of four sector economy?
  • Difference b/w import and export function?
  • What is average and marginal propensity to import?
  • Prove that: 1/1-MPC+MPM?

Lecture # 14:

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  • Define balance of payments?
  • How many parts of balance payments?
  • Differ b/w current and capital account?
  • When the trade is in balance mood?
  • Describe the factors in which payment balancing is in disequilibrium position?
  • Methods of financing the deficit of the balance of payments is a long question.
  • Write the cause of disequilibrium in the balance payments?

Lecture # 15:

  • What is exchange rate and write its type?
  • Define appreciation and depreciation?
  • What is Marshal-Lerner condition?
  • Define devaluation and revaluation?
  • Write the measures to maintain exchange rate fixed?

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