UGC NET Economics June 2025 Unit 2: Macro Economics PYQs (English–Hindi)

More money raises nominal spending at a given price level, shifting AD right. With classical full employment and a vertical long run AS curve, the final effect is a higher price level rather than permanently higher real output.
Money supply बढ़ने पर given price पर nominal spending बढ़ती है और AD right shift होती है। Classical full employment और vertical long run AS में final effect higher prices होता है; real output स्थायी रूप से नहीं बढ़ता।

Exam trap: a movement up along a fixed AD curve is different from a rightward shift of AD. Money neutrality does not mean AD stays unchanged.
Exam trap: fixed AD पर movement और AD का rightward shift अलग हैं। Money neutrality का अर्थ AD का unchanged रहना नहीं है।

A positive gap means actual output is temporarily above its sustainable potential. Overtime, unusually high capacity utilisation and employment beyond normal sustainable levels can generate it. Population growth or technology can instead raise potential output.
Positive gap में actual output अस्थायी रूप से sustainable potential से ऊपर होता है। Overtime, unusually high capacity utilisation और normal sustainable employment से अधिक work इसे पैदा कर सकते हैं। Population या technology growth potential output बढ़ा सकती है।

Example: actual output 105 and potential output 100 imply a positive gap of 5. Underutilisation of resources instead indicates output below potential.
Example: actual output 105 और potential 100 से positive gap 5 है। Resources का underutilisation actual output को potential से नीचे दिखाता है।

Government borrowing shifts loanable funds demand right, raising the interest rate. Higher interest encourages private saving and reduces private investment. At full employment, output is fixed, so higher government purchases are offset by lower private consumption and investment.
Government borrowing से loanable funds demand right shift और interest rate बढ़ती है। Higher interest private saving बढ़ाता तथा investment घटाता है। Full employment में output fixed है, इसलिए अधिक government purchases को lower private consumption और investment offset करते हैं।

With fixed output and the simple income identity, extra saving comes from reduced consumption. B and C reverse the standard interest rate and investment responses.
Fixed output और simple income identity में extra saving reduced consumption से आती है। B और C standard interest और investment responses की direction उलटते हैं।

Formula: Simple investment multiplier. Use: Find the marginal propensity to save in the simple closed economy without induced taxes.
Formula: Simple investment multiplier। उपयोग: Simple closed economy में marginal propensity to save निकालना।

Worked solution: k = 4 gives MPS = 1/4 = 0.25. The slope of the saving function must therefore be 0.25; only option (c) has that slope. The multiplier alone does not determine the intercept −12.
Worked solution: k = 4 से MPS = 1/4 = 0.25 है। Saving function की slope 0.25 होनी चाहिए, जो केवल option (c) में है। Multiplier अकेला intercept −12 तय नहीं करता।

Formula: Simple lump sum tax multiplier. Use: Find the income effect of an autonomous tax change with government spending unchanged.
Formula: Simple lump sum tax multiplier। उपयोग: Government spending unchanged होने पर autonomous tax change का income effect निकालना।

Worked solution: kT = −0.8/0.2 = −4; ΔY = −4 × 100 = −400. A tax rise reduces disposable income and consumption. This result assumes a simple model with no induced imports or interest crowding out.
Worked solution: kT = −0.8/0.2 = −4; ΔY = −4 × 100 = −400। Tax बढ़ने से disposable income और consumption घटते हैं। यह simple model का result है जिसमें induced imports या interest crowding out शामिल नहीं हैं।

Rational expectations, flexible prices and market clearing underpin the usual proposition: systematic anticipated monetary policy does not systematically raise real output or employment. B describes unanticipated policy, and D introduces an influence of nominal variables inconsistent with the intended no money illusion assumption.
Usual proposition rational expectations, flexible prices और market clearing पर आधारित है: systematic anticipated monetary policy real output या employment को लगातार नहीं बढ़ाती। B unanticipated policy और D nominal variables के influence की बात करता है, जो intended no money illusion assumption से मेल नहीं खाती।

Qualification: rational expectations use available information efficiently; they do not mean that people know every shock in advance. Read printed C as knowledge of the policy rule and relevant available information, not literal omniscience.
Clarification: rational expectations का अर्थ available information का efficient use है, हर shock पहले से जानना नहीं। Printed C को policy rule और relevant available information की जानकारी समझें, पूर्ण सर्वज्ञता नहीं।

Robert E Lucas Jr is a central contributor. New Classical macroeconomics developed mainly in the 1970s and uses rational, not adaptive, expectations together with flexible wages and prices. Under rational expectations, forecast errors are not systematically predictable using the information set.
Robert E Lucas Jr प्रमुख contributor हैं। New Classical macro मुख्यतः 1970s में विकसित हुआ; इसमें adaptive के बजाय rational expectations तथा flexible wages और prices होते हैं। Rational expectations में forecast errors information set से systematically predictable नहीं होते।

Therefore A D E are intended as true; B and C are false. “Random error” does not mean the actual price must always equal its forecast.
इसलिए A D E सही और B C गलत हैं। “Random error” का अर्थ actual price और forecast का हमेशा equal होना नहीं है।

A change in policy regime can change expectations and decision rules, so coefficients estimated under the old regime need not remain valid. Lucas’s critique targets policy evaluation based on historically stable reduced form relationships without modelling those behavioural responses.
Policy regime बदलने पर expectations और decision rules बदल सकते हैं; old regime से estimated coefficients जरूरी नहीं valid रहें। Lucas critique ऐसे policy evaluation पर है जो behavioural responses model किए बिना पुराने reduced form relations पर निर्भर रहता है।

Option (d) states the relevant issue. It does not assert that coefficients actually remain stable after a policy change.
Option (d) relevant issue बताता है। इसका अर्थ यह नहीं कि policy बदलने पर coefficients वास्तव में stable ही रहते हैं।

The conventional matching is thrift—Keynes, water diamond—Adam Smith, wage employment paradox—Pigou, and macroeconomic paradox—Boulding. Keynes’s thrift paradox distinguishes an individual attempt to save more from its aggregate demand effects.
Conventional matching है thrift—Keynes, water diamond—Adam Smith, wage employment paradox—Pigou और macroeconomic paradox—Boulding। Thrift paradox में individual की अधिक saving की कोशिश और aggregate demand पर उसका असर अलग हो सकता है।

Example: if all households cut consumption together, firms may reduce output and incomes; aggregate saving need not rise by the amount individuals intended.
Example: सभी households consumption घटाएँ तो firms output और income घटा सकती हैं; aggregate saving उतनी नहीं बढ़ती जितनी individuals ने चाही थी।

The sequence is Indian Currency and Finance (1913), A Tract on Monetary Reform (1923), A Treatise on Money (1930), A Monetary Theory of Production (1933), and The General Theory (1936).
क्रम है Indian Currency and Finance (1913), A Tract on Monetary Reform (1923), A Treatise on Money (1930), A Monetary Theory of Production (1933), और The General Theory (1936)।

Memory order: Currency → Reform → Money → Production → General Theory. The 1933 item is an essay, not a substitute title for the 1936 book.
याद रखें: Currency → Reform → Money → Production → General Theory। 1933 वाला item essay है; वह 1936 की book का दूसरा नाम नहीं है।

When nominal wages and prices adjust slowly, monetary contraction initially lowers demand and real output rather than immediately lowering inflation. Disinflation then causes a larger temporary output loss and potentially higher unemployment.
Nominal wages और prices धीरे adjust हों तो monetary contraction पहले demand और real output घटाता है; inflation तुरंत कम नहीं होती। इससे temporary output loss और unemployment अधिक हो सकते हैं।

Accurate expectations and credible policy can reduce this adjustment cost. Do not infer that disinflation necessarily makes firms raise prices.
Accurate expectations और credible policy adjustment cost कम कर सकते हैं। Disinflation का अर्थ firms का अनिवार्य रूप से prices बढ़ाना नहीं है।

B and C hold in the usual case: IS shifts right, and the initial income rise raises money demand at the old interest rate. With an upward sloping LM curve and fixed money supply, the new equilibrium has a higher interest rate and some crowding out of private investment; D and E are false.
Usual case में B और C सही हैं: IS right shift होती है और initial income increase से old interest rate पर money demand बढ़ती है। Upward sloping LM और fixed money supply में final interest rate बढ़ता तथा कुछ private investment crowd out होता है; D और E गलत हैं।

Formula: Fixed interest Keynesian expenditure multiplier. Use: Identify A as the initial spending effect, not necessarily the final IS LM income change.
Formula: Fixed interest Keynesian expenditure multiplier। उपयोग: A को initial expenditure effect के रूप में समझना; यह final IS LM income change जरूरी नहीं।

Example: MPC 0.8 and ΔG 100 imply an initial 500 increase at unchanged interest. The final increase is generally less than 500 when interest rises. Thus (c) is the intended option only under the initial effect reading; if A describes the final general equilibrium, only B C are correct and no option lists that pair.
Example: MPC 0.8 और ΔG 100 से unchanged interest पर initial increase 500 है। Interest बढ़ने पर final increase सामान्यतः 500 से कम होगा। इसलिए (c) initial effect reading में intended है; A को final equilibrium मानें तो केवल B C सही हैं, जिसका option नहीं है।

Here the question uses “aggregate demand curve” for the planned expenditure schedule in the Keynesian cross. A higher marginal propensity to spend makes that line steeper, raises the multiplier, and makes income more responsive to an interest induced investment change; IS becomes flatter.
यहाँ “aggregate demand curve” से Keynesian cross की planned expenditure schedule अभिप्रेत है। Higher marginal propensity to spend से यह line steeper, multiplier अधिक और interest induced investment change के प्रति income अधिक responsive होती है; IS flatter होती है।

Exam trap: distinguish the expenditure income diagram from the price output AD diagram. A steeper planned expenditure line is not a universal statement about the slope of price output AD.
Exam trap: expenditure income diagram और price output AD diagram अलग हैं। Planned expenditure line steeper होना price output AD की slope के बारे में universal statement नहीं है।