gokhale model paper 2 doubts

[SoniaKapoor]

Q1 The average rate of inflation in USA and Japan between the years 1960-73 is 3.2% and 6.1%
respectively, then the growth rate of
 a) No definite conclusion can be made             c) Japan will be more
 b) USA will be more                                      d)  Japan will be less

q2Suppose the demand function for sugarcane is Qd = 10 – 2P, and supply function is Qs = 3P –5. Calculate the original market equilibrium price and quantity. If government sets the support
price PS = 4 then what would be the amount of quantity to be purchased by the government to
restore equilibrium?
a) 4 units c) 0 unit
b) 7 units d) 5 units

q3 Depreciation of currency will worsen a country’s balance of payments if sum of the
absolute values of the demand elasticities for the country’s exports and imports is
a) greater than unity            c) equal to unity
b) less than unity                d) none of the above

q4 Monetarists and Keynesians disagree on which aspect of the money transmission mechanism
a) effect on investment c) effect of prices
b) effect of the interest rate d) effect on aggregate demand

[Arushi :))]

2. before : eqm price = 3 , qnty = 4
after : p = 4
qnty supplied = 7 and quantity demanded = 2
govt buys 5 units therefore.
3. Marshall lerner condition , its b.
4. aggregate demand doesnt change in case of monetarists. ..so d