I’m working on a macro economics writing question and need an explanation and answer to help me learn.
must have the book or PDF version of Exploring Macroeconomic 7th edition.
the answers is in the book/ PDF
~~Chapter 15~~~
1. Describe the marginal propensity to consume and show how it is computed.
2. Discuss how spending and output influences equilibrium in a simple model where aggregate expenditure = consumption.
3. Describe how unplanned inventory can influence equilibrium in the model where AE=(C+I+G+(X-M))
4. Briefly describe the expenditure multiplier and state how it is computed. How is it different from the Tax multiplier?
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~~~chapter 16~~~
1. List the tools of fiscal policy and discuss how they may be used to avert a recession.
2. What are the main arguments put forward by supply-side economics and the limitations of this arguments?
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~~~Chapter 17~~~
1. What is money? Discuss the characteristics of money as medium of exchange, unit of account, store of value, and means of deferred payment.
2. Define M1 and M2
3. Describe the money multiplier and explain how it works.
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