1. Prepare a PowerPoint (PPT) Presentation with at least 5-7 slides WITH CLEAR ANSWERS

Question

o Slide 1: TOPIC and Group member names and student numbers
o Slide 2: Learning outcomes/objectives
o Slides 3-5: Content
o Slide 6: Summary/Conclusion
o Slide 7: References (use Harvard referencing style)
2. Prepare 10 Multiple-Choice Questions (including the memorandum to the questions) – the question may comprise 5xMultiple-Choice Questions and 5xTrue/False Questions

Topic Groups
1 Chapter 18

18.1 The Keynesian model with a government
sector - Government spending (G)

2 Chapter 18

18.1 The Keynesian model with a government
sector - Taxes (T)

3 Chapter 18

18.1 The Keynesian model with a government
sector - The combined effect of the introduction of
government expenditure and taxes on the equilibrium
level of income - The Keynesian model with a government sector: a
summary

4 Chapter 18

18.2 Introducing the foreign sector into the
Keynesian model: the open economy - Exports (X)

5 Chapter 18

18.2 Introducing the foreign sector into the
Keynesian model: the open economy - Imports (Z)

6 Chapter 18

18.3 Factors that determine the size of the
multiplier

7 Chapter 19

19.1 The aggregate demand-aggregate supply
model - The aggregate demand curve - The slope of the AD curve
• The wealth effect
• The interest rate effect

2

8 Chapter 19

19.1 The aggregate demand-aggregate supply
model - The aggregate demand curve - The slope of the AD curve
• The international trade effect

9 Chapter 19

19.1 The aggregate demand-aggregate supply
model - The aggregate demand curve - The position of the AD curve

10 Chapter 19

19.1 The aggregate demand-aggregate supply
model - The aggregate supply curve - The slope of the short-run AS curve - The position of the AS curve - The long-run AS curve (LRAS)

11 Chapter 19

19.1 The aggregate demand-aggregate supply
model - The aggregate demand curve - Changes in aggregate demand

12 Chapter 19

19.1 The aggregate demand-aggregate supply
model - The aggregate demand curve - Changes in short-run aggregate supply

13 Chapter 19

19.2 The monetary transmission mechanism - The links between interest rates, investment
spending and the rest of the economy

14 Chapter 19

19.2 The monetary transmission mechanism - Other links between interest rates and the rest of
the economy
• The interest rate channel
• The exchange rate channel

15 Chapter 19

3

19.2 The monetary transmission mechanism - Other links between interest rates and the rest of
the economy
• The asset price channel
• The credit channel

16 Chapter 19

19.3 Monetary and fiscal policy in the AD-AS
framework - Expansionary and contractionary monetary and
fiscal policies - Monetary and fiscal policy lags
• The recognition lag

17 Chapter 19

19.3 Monetary and fiscal policy in the AD-AS
framework - Expansionary and contractionary monetary and
fiscal policies - Monetary and fiscal policy lags
• The decision lag

18 Chapter 19

19.3 Monetary and fiscal policy in the AD-AS
framework - Expansionary and contractionary monetary and
fiscal policies - Monetary and fiscal policy lags
• The implementation lag

19 Chapter 19

19.3 Monetary and fiscal policy in the AD-AS
framework - Expansionary and contractionary monetary and
fiscal policies - Monetary and fiscal policy lags
• The impact lag

20 Chapter 19

19.3 Monetary and fiscal policy in the AD-AS framework - Expansionary and contractionary monetary and
fiscal policies - The relative effectiveness of monetary and fiscal policy

Answer 1

PowerPoint Presentation

Slide 1: Title Slide

• Topic: The Keynesian Model with a Government Sector
• Group Members:
  • Member 1: [Name], [Student Number]
  • Member 2: [Name], [Student Number]
  • Member 3: [Name], [Student Number]

Slide 2: Learning Outcomes/Objectives

• Understand the basic principles of the Keynesian model with a government sector.
• Analyze the impact of government spending and taxation on national income.
• Evaluate the combined effects of government policies in a Keynesian context.
• Introduce the foreign sector and its implications on the Keynesian model.

Slide 3: Government Spending (G)

• Key Concepts:
  • Definition and Role of Government Spending in Keynesian Economics.
  • Direct impact on aggregate demand; leads to increased production and job creation.
  • Multiplier effect amplifies the initial expenditure.
• Formula: Increase in GDP (Y) = Multiplier x Increase in G.

Slide 4: Taxes (T)

• Key Concepts:
  • Taxation's impact on disposable income and consumption.
  • Types of taxes: progressive, regressive, and proportional.
  • The crowding-out effect: how increased taxes can decrease disposable income and potentially offset government spending.
• Formula: Change in Y = Multiplier x Change in T (where T is tax revenue).

Slide 5: Combined Effects of Government Expenditure and Taxes

• Key Concepts:
  • Interaction between government spending and taxes on equilibrium income.
  • Effective fiscal policy: Balancing government spending and taxation to optimize aggregate demand.
  • Graphical representation: Shifts in the IS curve with changes in G and T.

Slide 6: Summary/Conclusion

• The Keynesian model highlights the crucial role of government spending and taxation in managing economic fluctuations.
• The equilibrium level of income is directly influenced by government activities.
• Understanding these dynamics can aid in effective policy formulation during varying economic conditions.

Slide 7: References

• Mankiw, N. G. (2021). Principles of Economics. 9th ed. Cengage Learning.
• Blanchard, O. (2021). Macroeconomics. 7th ed. Pearson.
• Keynes, J. M. (1936). The General Theory of Employment, Interest, and Money. Harcourt Brace.

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Multiple-Choice Questions

Questions

1. What is the primary role of government spending (G) in the Keynesian model? a) To increase inflation b) To encourage private investment c) To influence aggregate demand d) To raise interest rates

2. A decrease in taxes (T) is most likely to result in: a) Decreased consumption b) Increased disposable income c) A reduction in government revenue d) Both b and c

3. The multiplier effect illustrates that: a) Government spending has a one-to-one impact on GDP b) Initial spending leads to a chain reaction of spending c) Tax cuts do not influence overall demand d) Government spending only affects private sector investment

4. The crowding-out effect occurs when: a) Government spending leads to a decrease in private spending b) Increased taxes boost consumption c) Interest rates rise due to lower government spending d) The economy operates at full capacity

5. Which of the following is true regarding the Keynesian model? a) It emphasizes long-term supply factors over demand b) Government intervention is unnecessary c) The equilibrium level of income is influenced by fiscal policy d) It does not account for international trade

True/False Questions

6. T/F: Government spending always results in less private sector investment.
7. T/F: Tax increases generally lead to a decrease in consumer spending.
8. T/F: The Keynesian model posits that aggregate demand is the main driver of economic growth.
9. T/F: The multiplier effect is more significant during economic recessions.
10. T/F: In the Keynesian framework, higher taxes automatically lead to a decrease in national income.

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Answer Key (Memorandum)

1. c) To influence aggregate demand
2. d) Both b and c
3. b) Initial spending leads to a chain reaction of spending
4. a) Government spending leads to a decrease in private spending
5. c) The equilibrium level of income is influenced by fiscal policy
6. False
7. True
8. True
9. True
10. False

This presentation and the accompanying questions should provide a comprehensive overview of the Keynesian model with respect to government spending, taxation, and their combined effects alongside the necessary evaluations.