Q1. Net National product = Gross National product - Q2. If the value of GDP deator is 1.34, if base year =2010 and the current year 2020, the general price has by 34% from 2010 to 2020. Q3. Net factor payment = factor payment abroad less factor payment abroad. Q4. The largest component of National Income is Q5. In the market for loanable funds if existing interest rate is higher than equilibrium rate there will be excess of loanable funds. Q6. Suppose you have following two sector macroeconomic model: Y = C +I +G C: 350 +0.8 (Y-T) T =1200 , G=1000 I = 1200 -50r and Y = 6000, The equilibrium interest rate is: Q7. In model of national income, government increases its expenditure but taxes are constant, national savings and finally equilibrium interest rate Q8. Consumer price index assigns xed weight to change in price but GDP deator assigns weight to change in price. Identity whether the following statements are TRUE or FALSE Q9. In case of excess demand in market for loanable funds interest rate starts rising until it reaches the market clearing level. Q10. Keynesian consumption function in two sector macro- model is upward sloping and linear. Q11. Consumer price index cannot include imported goods. Q12. Marginal propensity to consume indicates the slope of national savings function