Macroeconomics  © John Petroff Source: PEOI

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Assignments for Macroeconomics Chapter 8

Assignment #1:
Draw the aggregate expenditure graph. Show where the
equilibrium is. Explain why this is an equilibrium.

Assignment #2:
Draw the leakage-injection graph.Show where the equilibrium is.
Explain why this is an equilibrium.

Assignment #3:
Draw the aggregate expenditure graph. Show the multiplier
effect. Explain what is taking place in the multiplier effect.

Assignment #4:
Outline the process called multiplier effect. Show how it is
calculated. Mention complex multipliers.

Assignment #5:
 Explain the lesson of the paradox of thrift. Show how it ties
in with the concept of multiplier.

Assignment #6:
Draw a consumption line in the aggregate expenditure graph.
Explain what Keynes is showing with it.

Assignment #7:
Draw a consumption line in the aggregate expenditure graph.
Is it stable? What causes it to shift?

Assignment #8:
How is saving presented in the Keynesian model? Where and how
is it shown in the aggregate expenditure graph?

Assignment #9:
Explain how investment is presented in the Keynesian model.
Mention its determinants. Why are the determinants external
to the model.

Assignment #10:
Explain why investment in Keynesian view is independent of
income.

Submit assignment

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