Sure! Below is an outline for a PowerPoint presentation based on the specified guidelines for the topic group "18.1 The Keynesian model with a government sector - Government spending (G)". This will include 5-7 slides, as well as 10 multiple-choice questions with their answers.
PowerPoint Presentation Outline
Slide 1: Title Slide
- Topic: The Keynesian Model with a Government Sector - Government Spending (G)
- Group Members:
- Member 1: Name, Student Number
- Member 2: Name, Student Number
- Member 3: Name, Student Number
- Member 4: Name, Student Number
Slide 2: Learning Outcomes/Objectives
- Understand the role of government spending in the Keynesian model.
- Analyze the effect of government spending on equilibrium income.
- Examine the multiplier effect of government expenditure.
- Explore the implications of government spending for fiscal policy.
Slide 3: Government Spending in the Keynesian Model
- Definition of Government Spending (G).
- Importance of G in stimulating economic activity.
- The basic Keynesian equation: Y = C + I + G + (X - M) where Y is total output.
Slide 4: Impact of Government Spending
- How G influences aggregate demand (AD).
- The direct and indirect effects of G on national income (Y).
- Illustrate with a graph showing shifts in the AD curve due to changes in G.
Slide 5: The Multiplier Effect
- Definition and formula of the multiplier: k = 1 / (1 - MPC) where MPC is marginal propensity to consume.
- Example of how an increase in G leads to a larger increase in Y through the multiplier effect.
- Real-world implications for policymakers.
Slide 6: Summary/Conclusion
- Recap of the importance of government spending in the Keynesian framework.
- Summary of how G affects equilibrium income and overall economic stability.
- Discussion on the balance between government spending and potential inflationary pressures.
Slide 7: References (Using Harvard Referencing Style)
- Mankiw, N. G. (2016). Principles of Economics. 7th ed. Boston: Cengage Learning.
- Blinder, A. S. (2008). Keynesian Economics. In: The New Palgrave Dictionary of Economics. 2nd ed. Basingstoke: Palgrave Macmillan.
- Keynes, J. M. (1936). The General Theory of Employment, Interest, and Money. London: Macmillan.
Multiple-Choice Questions
-
What is the primary function of government spending (G) in the Keynesian model?
- A. To regulate trade
- B. To stimulate aggregate demand
- C. To limit inflation
- D. To collect taxes
- Answer: B
-
In the Keynesian model, an increase in government spending generally leads to:
- A. A decrease in national income
- B. No change in national income
- C. An increase in national income
- D. An immediate decrease in taxes
- Answer: C
-
The multiplier effect shows that an increase in government spending will result in:
- A. A less than proportional increase in income
- B. No increase in income
- C. A larger than proportional increase in income
- D. A decrease in consumer spending
- Answer: C
-
In the equation Y = C + I + G + (X - M), what does ‘Y’ represent?
- A. Aggregate Demand
- B. National Income
- C. Government Spending
- D. Net Exports
- Answer: B
-
What is the formula for calculating the multiplier (k)?
- A. k = (1 - MPC)
- B. k = 1 / (1 - MPC)
- C. k = MPC / (1 - MPC)
- D. None of the above
- Answer: B
True/False Questions
-
True or False: Government spending has no impact on aggregate demand.
- Answer: False
-
True or False: The multiplier effect means that the total increase in income is less than the initial increase in government spending.
- Answer: False
-
True or False: Government expenditure is considered an exogenous factor in the Keynesian model.
- Answer: True
-
True or False: In the Keynesian framework, fiscal policy is ineffective during a recession.
- Answer: False
-
True or False: An increase in taxes (T) can counteract the effects of an increase in government spending (G).
- Answer: True
This should give you a solid foundation for your PPT and the accompanying assessment. If you need further elaboration or adjustments, feel free to ask!
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