KKHSOU Macro Economics- II (PGEC S2 02) Solved Assignment 2025

KRISHNAKANTA HANDIQUI STATE OPEN UNIVERSITY
Surya Kumar Bhuyan School of Social Sciences
Home Assignment
Master of Arts (Economics)
Macro Economics- II (PGEC S2 02)
2nd Semester
(2025 sessions)

[Assignments are required to be written in your own language. Copying in toto from the learning materials will carry less score]

B. Answer the following questions (Answer within 3 0 0 words). 10x5 =50
1) Explain the concepts of inside money and outside money, and discuss the role of high-powered money in the money multiplier process. How does the money multiplier affect the overall money supply in an economy? 2+4+4=10
2) Compare and contrast the Post-Keynesian approaches to the demand for money, focusing on Patinkin’s Real Balance Effect and Baumol’s inventory approach. Critically evaluate their relevance in modern monetary theory. 7+3=10
3) Discuss the Phillips Curve analysis, distinguishing between the short-run and long-run Phillips Curve. Explain how the concepts of adaptive expectations and rational expectations modify the traditional Phillips Curve framework. 2+2+6=10
4) Critically analyze Samuelson’s and Hicks’ theories of business cycles. Discuss the relative efficiency of monetary and fiscal policies in controlling business cycles, providing relevant examples. 5+5=10
5) Compare the policy implications of Monetarism and Keynesianism. Discuss the crisis in Keynesian economics and the revival of Monetarism, highlighting the role of the monetary-fiscal policy mix in achieving economic growth. 4+6=10