Macroeconomics

Table of Contents

1. Topic pack - Macroeconomics - introduction
2. 2.1 The level of overall economic activity (notes)
3. 2.1 The level of overall economic activity (questions)
4. Section 2.2 Aggregate demand and supply (notes)
5. Section 2.2 Aggregate demand and supply (simulations and activities)
6. 2.2 Aggregate Demand and Aggregate Supply (questions)
   1. AD/AS - self-test questions
   2. Short questions
   3. Data response (1)
   4. Data response (2)
   5. Long questions
7. 2.3 Macroeconomic objectives (notes)
8. Low Unemployment
9. 2.3 Macroeconomic objectives (questions)
10. 2.4 Fiscal policy (notes)
11. 2.4 Fiscal policy (questions)
12. 2.5 Monetary policy (notes)
13. 2.5 Monetary Policy (questions)
14. Section 2.6 Supply-side policies (notes)
15. 2.6 Supply-side policies (questions)
16. Print View

Data response (1)

Read the article:

• Economists Warm to Government Spending but Debate Its Form

and then answer the questions below.

Question 1

Explain what is meant by the multiplier principle

Question 2

Explain the reasons why there has been a shift in the thinking of many leading economists about the merits of fiscal policy.

Question 3

Using aggregate supply and demand diagrams, examine the factors that determine the size of the multiplier effect following an increase in government spending.

Question 4

Assess whether an increase in government spending and taxation by equivalent amounts will leave national income unchanged?