Describe the remedial measures for the presence of multicollinearity in a multiple regression model.

Distinguish between R² and adjusted- R².

What are properties that a good estimator should satisfy?

 Explain the impact of measurement error in independent variable of a regression model.

Which assumption is violated when there is heteroscedasticity in dataset? Describe any three methods of detection of heteroscedasticity.

Explain why an error variable is added to the regression model. Distinguish between the error term (u) and the residual (û).

What is meant by autocorrelation? Describe the reasons for the presence of autocorrelation in regression model. What are the consequences of autocorrelation?

Specify a multiple regression model. Point out the assumptions about the error term. Describe how the parameters of the model can be estimated by maximum likelihood method.

 Discuss the factors that lead to a shift in the medium-run aggregate supply (AS) curve.

Explain the concept of adaptive expectations. What are its limitations?

What are the implications of policy ineffectiveness proposition?

 Write a short note on the limits to monetary policy in an economy.

Explain the major insights from the Ricardian equivalence proposition.

State the reasons behind exchange rate overshooting.

Bring out the salient features of the Baumol-Tobin model of transaction demand for money.

What is a loss function? How does the shape of the function change according to perception of inflation and unemployment by the Central Bank?

 Explain how a consumer's preference and optimum levels of consumption is determined in the two-period consumption model.

 Derive the equations for IS and LM curves. Specify the parameters of the model. Explain how the levels of equilibrium output and interest rate are influenced by changes in these parameters.

उन कारकों पर चर्चा करें जो मध्यम अवधि के कुल आपूर्ति (AS) वक्र में परिवर्तन का कारण बनते हैं।

अनुकूली अपेक्षाओं की अवधारणा की व्याख्या करें। इसकी क्या कमियाँ हैं?