1:05 AM~ 0.1KB/s O .ill all 93 Practice Questions.pdf Shahanawaz Sharif Assistant Professor, Economics Intermediate Macroeconomics-II Practice Questions On Demand Side and Supply Side Economy 1) Derive IS and LM curve by using four quadrant diagram and show the equilibrium output and interest rate. 2) Briefly explain the shifting factor of IS & LM. 3) Show the relative effectiveness of fiscal and monetary policy in developed countries. 4) Show the effects of price level change on the demand side equilibrium of the economy. 5) Consider the following market equilibrium: IS: Y = C(Y - t(Y)) + i(r)+g LM: - = 1(r) + k(v) a) Find out the government expenditure multiplier. b) Find out the tax multiplier. c) Find out the balanced budget multiplier. d) Find out the money multiplier. 6) Consider the following macro model: IS: Y = C(Y - t(Y)) +i(r)+g LM: " = 1(r) + k ( v ) Production Function: Y = Y(N, K) Where, N = Labor input; K = fixed capital stock a) Find out the demand for labor of a competitive firm. b) Find out the demand for labor of a monopoly firm. c) Find out the aggregate demand for labor of an economy. $5 Good Luck $545