Describe the concept of the consumption function

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Macroeconomics Assignment

1. What are the different measures of the National Income? How is this information usually utilized and what are the difficulties encountered in trying to accurately measure the National Income?

2. What are the main determinants of the level of National Income? Explain the concept of the consumption function, verbally, graphically and mathematically. How is equilibrium of the National Income attained?

3. Explain the role of the government in national income determination. What is fiscal policy, how does it impact economic activity?

4. "Money is defined in terms of its functions", explain what this statement means. What are the factors that determine the demand for and supply of money. How is equilibrium attained in the money market?

5. What is the relationship between inflation and unemployment? How can these problems be addressed?

6. On what basis does international trade among nations take place? Examine the arguments advanced for and against protectionism.

7. How is the foreign exchange rate determined? Assess the advantages and disadvantages of having a freely floating exchange rate system. What is the balance of payments?

Reference no: EM13115660

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