What happens to aggregate demand

Reference no: EM132138370 , Length: word count:1000

Introductory Macroeconomics Assignment -

Questions

1. Suppose that the election of a popular candidate suddenly increases people's confidence in the future. Use the model of aggregate demand and aggregate supply to analyse the effects on the economy.

2. Suppose a wave of negative animal spirits overruns the economy, and people become pessimistic about the future. What happens to aggregate demand? If the Central Bank (or Fed) wants to stabilise aggregate demand, how shout it alter the money supply? If it does this, what happens to the interest rate? why might the Central Bank (or Fed) choose not to respond in this way?

Preparation - The slides and textbook readings will give you the basic framework of the ideas, theories and concepts you will need to complete the assignment. These notes may not be sufficient on their own. You will need to make use of additional reading and extra references in preparing your assignment. When you are taking notes for your assignment, try and 'translate' what the author is saying into your own words. Don't just copy out huge chunks from other people's work, otherwise they will probably end up in your assignment with very little of the wording changed.

Please answer both questions in different sections. Maximum word count should be no more that 1000 (approximately 4 pages).

Reference no: EM132138370

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Reviews

len2138370

10/11/2018 9:28:44 PM

Referencing - All sources, whether academic books, journal articles, newspaper articles, material from the internet etc., must be cited in the main text of your assignment itself. The assignment should contain at least three well defined and distinct sections: An introduction; A discussion (the body of the assignment); A conclusion. Please ensure that you are aware of the University’s Academic integrity policy.

len2138370

10/11/2018 9:28:37 PM

Marking Criteria - (25 pt) Relevance of your answer to the question; (10 pt) Clarity of expressions; (25 pt) Using correct figures, tables, and relevant mathematical expressions; (10 pt) Supporting documentation for arguments; (10 pt) Proper acknowledgement of documentation and the use of a bibliographic convention; (5 pt) Overall presentation, including correct grammar, spelling and punctuation; (5 pt) Comprehensive coverage reflecting mastery of readings and text; (10 pt) Logical planning and sequence.

len2138370

10/11/2018 9:28:30 PM

Please answer both questions in different sections. Maximum word count should be no more that 1000 (approximately 4 pages). Make sure you have understood what the assignment is getting at and that you know how to complete it. In particular, please be aware that no assignment will ask you just to write down everything you know about a subject area; instead, it will require you to consider specific issues. Try to stick to the introduction, discussion, conclusion format in your essay, that is, set the context of the essay and outline the structure of your argument, cover the relevant material, then tie the discussion up by summarising what has been said and offering YOUR opinion on what the question is asking about, based on the sources you have used.

len2138370

10/11/2018 9:28:24 PM

You should provide evidence for all the assertions that you make during your assignment; that is, make reference to ideas, theories and concepts, empirical research and/or experience of your own which support your claims. Remember to cite the sources of ALL the ideas and quotations that you have used in-text. Also, don’t forget to provide a full bibliography and don’t try and pad it out. Only list sources you have actually looked at. Refer to the referencing guidelines provided for this topic. Develop your points to make it clear what you are getting at and don’t leave arguments ‘hanging in mid-air’

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