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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.