Macroeconomics

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Assignment #1:  Show graphically and explain how an increase in government
spending affects NNP equilibrium level. Use the aggregate
expenditure graph as well as the leakage-injection graph.

Assignment #2:  Show graphically and explain how an increase in a (lump sum) tax
affects NNP equilibrium level. Use both, aggregate expenditure
and leakage-injection graphs.

Assignment #3: What is the overall effect of a simultaneous increase in tax
collection and government spending? Show this effect with the
help of both aggregate expenditure and leakage-injection
graphs.

Assignment #4: In Keynesian view, what should be the fiscal policy over a
business cycle? What elements increase and decrease its
effectiveness?

Assignment #5: What is the impact of various government programs which make up
the bulk of government spending and are referred to as
nondiscretionary? Why is a full-employment budget calculated and
what is its purpose?

Assignment #6: Discuss the problems and limitations of fical policy.