Economics 7136/2 June 2017

The exam evaluates macroeconomic principles, including economic development, inflation, and fiscal policy. Section A explores economic growth in India, emphasizing HDI trends, export subsidies, market-based strategies, and trade liberalization impacts. It also examines inflation and deflation dynamics in Japan and the UK, with a focus on productivity improvements, monetary policy, and deflationary risks. Section B offers essays on reducing unemployment, addressing current account deficits, and analyzing tax policy shifts. It covers government spending, direct versus indirect taxes, and their implications for economic activity. Emphasis is placed on diagrams, data analysis, and evaluating policy effectiveness in diverse contexts.