ASS C 08 KEYNESIAN THEORY

Chapter 8:

KEYNESIAN EMPLOYMENT THEORY – Assignments

 

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.

 

 

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