List of top Economics Questions on Macroeconomics asked in IIT JAM EN

The IS–LM model for a closed economy is given below, where $Y$ is output, $C$ is consumption, $I$ is investment, $T$ is income tax, $\dfrac{M^d}{P}$ is money demand, $P$ is price level, $r$ is real interest rate, $\pi^e$ is expected inflation rate and $G$ is government expenditure: \[ C = 200 + 0.8(Y - T) - 500r, \] \[ I = 200 - 500r, \] \[ T = 20 + 0.25Y, \] \[ \frac{M^d}{P} = 0.5Y - 250(r + \pi^e). \] If $G = 196$, $\pi^e = 0.1$, the nominal money supply equals 9890 and the full employment output equals 1000, the full employment equilibrium price level in the economy is ___________. (in integer) 
 

Individuals in a country start earning and consuming at the age of 18 years, retire at the age of 60 years and die at the age of 90 years, without leaving any debt and bequests. The income of an individual at age $t$ (in years) is given by the expression $100t - t^2$. The price level is constant and the interest rate is zero. According to the life cycle theory of consumption, the average annual consumption of an individual is _____________. (in integer) 
 

The aggregate production function for a country is $Y = 10N - 0.005N^2$, where $N$ is the quantity of labor input. The aggregate labor supply function is $N = 55 + 5w$, where $w$ is the real wage rate. Assuming perfectly competitive labor and product markets, the equilibrium real wage is ___________. (in integer) 
 

The following data relate to a country’s GDP in 2012–13 (in local currency). 

The value of this country’s imports (in local currency) in 2012–13 is __________. (in integer) 
 

In a small open economy, the desired domestic savings ($S^d$) and the desired domestic investment ($I^d$) are as follows, where $r^w$ is the world real interest rate. \[ S^d = 10 + 100r^w, \quad I^d = 15 - 100r^w \] If $r^w = 3%$, the current account balance in the equilibrium would be ___________. (in integer) 
 

Consider an economy where the full employment output is 1 trillion Rupees and the natural rate of unemployment is 6%. If actual unemployment rate is 8%, then according to Okun's law, the absolute gap between the full employment output and actual output (in billion Rupees) will be __________. (in integer)