Macroeconomics

© John Petroff Source: PEOI

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.

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