Workbook Ch 17 - 2019 - Chapter based practical questions PDF

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Chapter based practical questions...

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1 MODULE: EKN 120 -2019

Workbook: Chapter 17 Any uncertainties can be cleared either in class or with one of the Tutors

This Workbook consist of three sections

Warmup

• In this sections you are required to master and prepare / read / practise concepts / theory and in some cases applications before the chapter is discussed in class

• This section will be discussed explained in class Practical Applications

Recover

• This can be seen as voluntary homework after the lectures

2

Warmup Chapter 17:

Aggregate Demand and Aggregate Supply 1. Describe briefly the purpose of the AD-AS model: p347 __________________________________________________________________________________ _________________________________________________________________________________ . __________________________________________________________________________________ _________________________________________________________________________________ .

2. Define Aggregate Demand (AD) : p347 __________________________________________________________________________________ _________________________________________________________________________________ . __________________________________________________________________________________ _________________________________________________________________________________ . __________________________________________________________________________________ _________________________________________________________________________________ . 3.

List the factors that will influence the AD curve to shift right or left: p351 (next to fig 17.4)

__________________________________________________________________________________ __________________________________________________________________________________ _________________________________________________________________________________ . __________________________________________________________________________________

3 4. Distinghuish shortly between the long term and short trem AS curves – Illustrate each one graphically: (Fig 17.5 p 353 and Fig 17.6 p354)

6. List the factors that will influence the AS curve to shift right or left: p355 (next to fig 17.7) __________________________________________________________________________________ __________________________________________________________________________________ _________________________________________________________________________________ . __________________________________________________________________________________

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Section 2: These aspects will be discussed in class 1) Derive the AD curve from the expenditure-output model: (p348 Fig 17.1) 2) Ilustrate the shifts of the AD curve if total spending changes: (p349 en Fig 17.2) 3) For what reason will the AD curve shift more than TE (total expenditure) in the TE model? (p:349)

4 4)

Illustrate the shifts in the AD curve which are caused by changes in one or more of the determinants of Aggregate Demand: (p351 Fig 17.4)

5) Discuss briefly by illustrating the difference between the long- and short term Aggregate Supply curves: (p353- 354 Fig 17.5 en 17.6) 6) Illustrate the shifts in the AS curve which are caused by changes in one or more of the determinants of Aggregate Supply: (p355 Fig 17.7) 7) Illustrate the equilibrium model where both AD and AS curves are drawn on the same axis (p358, Fig 17.8)

8) Indicate changes to the equilibrium shown in 7 if one or more of the determinants of Aggregate Demand or Supply change. Discuss in each case the outcome and influence on each of the following: p.359-363) a. b. c. d. e. f.

Recession conditions Price Levels (Inflation) Cyclical Unemployment Cost-Push Inflation Full Employment Economic Growth

Section 3: Post Lecture Consolidation

Use the following video links for further explenations https://www.youtube.com/watch?v=em5Wqg1IVp8 End of Chapters Questions Questions: 1,3,5,6, 11 and 12...