1.Given the following information about an economy, calculate net domestic product at factor cost: (i) Gross domestic product at market prices = SR 12000 Crores (ii) Consumption of fixed capital = SR 1500 Crores (iii) Subsidies = SR 300 Crores (iv) Indirect taxes = SR 1000.

2.Given the following information, calculate GDPFC: (i) NNPMP = SR 3200 Cr (ii) NFIA = SR 200 Cr (iii) Consumption of fixed capital = SR 1000 Cr (iv) Indirect taxes = SR 500 Cr (v) Subsidies = SR 300 Cr

3.What do you understand by the term voluntary unemployment

4.What are the assumptions on which the classical theory of income and employment based?

5.The school of thought that emphasizes the natural tendency for an economy to move toward equilibrium full employment without inflation

6.Justify the following statements with through explanation

Consumption function shows the relationship between consumption expenditure and various level of disposable income.

4. Marginal propensity to consume varies between zero and infinity.

5. Average propensity to consume is the addition in consumption to the addition in disposable income.

6. The sum of average propensity to consume and marginal propensity to consume is always equal to one.

8.The following equations describe an economy C = 100 + 0.75Yd I = 50 - 25r T = G = 50 Where C is aggregate consumption, Yd is disposable income, I is aggregate investment. T is taxes, G is government purchases and r is the rate of interest. Derive the IS curve for the economy.

9.Discuss the scope of macroeconomics

10.Distinguish between macroeconomics and macroeconomics