UGC NET Economics 2012 Unit 2: Macro Economics PYQs (English–Hindi)

In the classical dichotomy, real output and employment are determined by real forces. Money primarily facilitates transactions and determines nominal magnitudes. Its medium of exchange role is therefore central to this question.
Classical dichotomy में real output और employment real factors से तय होते हैं। Money मुख्यतः transactions आसान करती और nominal magnitudes को प्रभावित करती है। इसलिए इस question में medium of exchange सही है।

Do not confuse money’s several general functions with the particular function emphasised by the classical approach. A change in the unit of account need not permanently change real production.
Money के सभी general functions और classical approach के मुख्य emphasis में अंतर रखें। Monetary unit बदलने से real production स्थायी रूप से बदलना जरूरी नहीं।

Formula: Money market equilibrium. Use: Find the income level consistent with a fixed real money supply when interest does not affect demand.
Formula: Money market equilibrium। उपयोग: जब interest का money demand पर असर न हो, fixed real money supply के अनुरूप income निकालना।

With real money supply 100 and k = 0.2, equilibrium income is 500 at every interest rate. Thus LM is vertical in an interest rate–income diagram. Horizontal LM instead corresponds to very high interest elasticity, as in the limiting liquidity trap.
Real money supply 100 और k = 0.2 में हर interest rate पर equilibrium income 500 है। इसलिए interest rate–income diagram में LM vertical है। Horizontal LM अत्यधिक interest elasticity या limiting liquidity trap से जुड़ी है।

Speculative balances reflect uncertainty about future interest rates and the inverse relationship between bond prices and yields. Someone expecting interest rates to rise may hold money to avoid a bond price loss.
Speculative balances future interest rates की uncertainty और bond prices व yields के inverse relation से जुड़े हैं। Interest rate बढ़ने की expectation में व्यक्ति bond price loss से बचने के लिए money रख सकता है।

Formula: Perpetual bond price. Use: Illustrate the inverse price yield relation with a fixed coupon.
Formula: Perpetual bond की price। उपयोग: Fixed coupon पर price और yield का inverse relation देखना।

A perpetual annual coupon of 100 is worth 2,000 at 5% but 1,000 at 10%. Unexpected expenses describe precautionary demand; bridging receipts and spending describes transactions demand.
100 annual coupon वाले perpetual bond की price 5% पर 2,000 और 10% पर 1,000 है। Unexpected expenses precautionary demand और receipts व spending के gap को भरना transactions demand है।

Formula: Permanent consumption relation. Use: Relate normal planned consumption to sustainable expected income.
Formula: Permanent consumption relation। उपयोग: Normal planned consumption को sustainable expected income से जोड़ना।

With k = 0.8 and permanent income 1,000, permanent consumption is 800. A one off windfall need not be fully consumed immediately. This does not mean transitory income can never affect observed total consumption.
k = 0.8 और permanent income 1,000 पर permanent consumption 800 है। One off windfall पूरी की पूरी तुरंत consume होना जरूरी नहीं। इसका अर्थ नहीं कि transitory income कभी observed total consumption प्रभावित नहीं करती।

Life cycle theory links consumption to lifetime resources, including wealth and expected earnings, rather than current income alone. Planning across working life and retirement explains consumption smoothing.
Life cycle theory consumption को केवल current income के बजाय wealth और expected earnings सहित lifetime resources से जोड़ती है। Working life और retirement के लिए planning consumption smoothing को explain करती है।

Formula: Simple life cycle consumption budget. Use: Spread lifetime resources evenly across remaining life with zero interest and no bequest.
Formula: Simple life cycle consumption budget। उपयोग: Zero interest और no bequest मानकर lifetime resources को remaining life में बाँटना।

If wealth W = 0, remaining working years R = 20, annual income Y = 100 and remaining life T = 40, planned annual consumption is 50. Saving during work finances retirement consumption.
W = 0, remaining working years R = 20, annual income Y = 100 और remaining life T = 40 हो तो planned annual consumption 50 है। Working years की saving retirement consumption को finance करती है।

The standard argument is that transferring a fixed amount from a lower MPC group to a higher MPC group can raise consumption and aggregate demand. A single rich person versus many households with a much larger combined income is not a controlled demonstration of redistribution.
Standard argument है कि lower MPC group से higher MPC group को fixed income transfer करने पर consumption और AD बढ़ सकते हैं। एक rich person की income को बहुत अधिक combined income वाले कई households से compare करना redistribution का controlled demonstration नहीं है।

Formula: Consumption effect of redistribution. Use: Hold total income fixed while comparing the two groups’ spending responses.
Formula: Redistribution का consumption effect। उपयोग: Total income fixed रखते हुए दोनों groups की spending responses compare करना।

Transfer 100 from a group with MPC 0.5 to one with MPC 0.9: consumption rises by 40. This is the logic behind keyed (b). Printed option (c) is also malformed and does not give a proper contrasting reason code.
MPC 0.5 वाले group से MPC 0.9 वाले group को 100 transfer करें तो consumption 40 बढ़ती है। यही keyed (b) के पीछे logic है। Printed option (c) भी malformed है; यह proper contrasting reason code नहीं देता।

Investment is current expenditure and therefore contributes to demand. When it creates productive capital, it also raises future capacity, which is its supply effect. R explains that second channel directly.
Investment current expenditure होने से demand में योगदान देती है। Productive capital बनने पर future capacity भी बढ़ती है; यही supply effect है। R इसी दूसरे channel की direct explanation है।

Example: building a factory creates demand for construction today and capacity to produce goods later. Keep the timing and the two effects distinct.
Example: factory बनाने से आज construction demand और बाद में goods बनाने की capacity पैदा होती है। दोनों effects और उनकी timing अलग रखें।

The intended sequence is the older quantity theory → Cambridge cash balances → the Keynesian income expenditure approach → Friedman’s 1956 restatement. Hence III IV II I.
Intended sequence है पुरानी quantity theory → Cambridge cash balances → Keynesian income expenditure approach → Friedman का 1956 restatement। इसलिए III IV II I।

Quantity theory is much older than Fisher’s 1911 transactions presentation. Do not date the origin of the entire theory solely from that later formalisation.
Quantity theory, Fisher की 1911 transactions presentation से बहुत पुरानी है। पूरी theory का origin केवल उस बाद की formalisation से न मानें।

New Classical macroeconomics—Lucas; permanent income—Friedman; balanced budget multiplier—Haavelmo; New Keynesian economics—Mankiw. Thus 2 4 1 3 is the match.
New Classical macroeconomics—Lucas; permanent income—Friedman; balanced budget multiplier—Haavelmo; New Keynesian economics—Mankiw। इसलिए matching 2 4 1 3 है।

Lucas is a leading New Classical economist, but John Muth originally formulated rational expectations in 1961. An association in a matching question does not establish sole authorship of every underlying idea.
Lucas प्रमुख New Classical economist हैं, लेकिन rational expectations का original formulation John Muth ने 1961 में दिया। Matching में association का अर्थ हर underlying idea की sole authorship नहीं है।

IS LM—Hicks and Hansen; consumption ratchet—James Duesenberry; life cycle hypothesis—Franco Modigliani and Richard Brumberg; New Classical critiques of Keynesian analysis—Lucas and Sargent. Thus 3 4 1 2.
IS LM—Hicks और Hansen; consumption ratchet—James Duesenberry; life cycle hypothesis—Franco Modigliani और Richard Brumberg; Keynesian analysis की New Classical critiques—Lucas और Sargent। इसलिए 3 4 1 2।

The ratchet effect means consumption may adjust downward less readily after an income fall because households try to preserve previous living standards. This differs from the life cycle explanation based on lifetime resources.
Ratchet effect में income घटने पर consumption उतनी आसानी से नीचे नहीं आती क्योंकि households previous living standard बनाए रखने की कोशिश करते हैं। यह lifetime resources पर आधारित life cycle explanation से अलग है।