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ECONOMICS – Daily Answer Writing Challenge, 05 July 2014

ECONOMICS – Daily Answer Writing Challenge, 05 July 2014

1) Account for the changes in employment pattern in India after liberalization. What are your suggestions for employment security in the “informal” sector of the economy? Discuss. (300 words)

2) “Speculators may do no harm as bubbles on a steady state of enterprise, but the position is serious when enterprise becomes the bubble on whirlpool of speculation. When capital development of a country becomes a byproduct of the activities of a casino, the job is likely to be undone ” Explain in the context of global financial crisis and its impact on Indian Economy. (300 words)
3) Suppose fiscal policy in a country is characterized by excessive government spending. Also suppose the central bank in that country is targeting the interest rate. What effect will the overly expansionary fiscal policy have on the money supply? on Output and inflation? (200 words)


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