Question

1. Prepare a PowerPoint (PPT) Presentation with at least 5-7 slides with answers n each slide
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

Answers

GPT-4o mini
Here’s a sample PowerPoint presentation and multiple-choice questions focusing on Chapter 18 of your topic list, specifically on "The Keynesian model with a government sector - Government spending (G)".

### PowerPoint Presentation - "The Keynesian Model with Government Spending"

#### 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]

#### Slide 2: Learning Outcomes/Objectives
- Understand the role of government spending in the Keynesian model.
- Analyze how government spending influences aggregate demand.
- Explore the impact of government expenditure on equilibrium income levels.

#### Slide 3: Content - Overview of the Keynesian Model
- The Keynesian model emphasizes the importance of total spending (aggregate demand) in determining output and growth.
- Government spending (G) is a crucial component of aggregate demand:
- \(AD = C + I + G + (X - M)\)
- Changes in government spending directly affect equilibrium national income.

#### Slide 4: Content - Government Spending and Aggregate Demand
- Government spending leads to a multiplier effect:
- Initial increase in spending leads to increased income and consumption.
- Example: If government spends $1 million, total output can increase by more than $1 million due to subsequent rounds of spending.

#### Slide 5: Content - Impact on Equilibrium Income
- **Equilibrium Adjustment**:
- To find the new equilibrium, shifts in aggregate demand must offset changes in output.
- Increased G raises equilibrium income and output levels:
- Short-run vs Long-run implications for inflation and employment.

#### Slide 6: Summary/Conclusion
- Government spending is a key driver of economic activity in the Keynesian framework.
- Understanding this relationship helps policymakers manage economic fluctuations through fiscal policy.
- Future implications for economic stability and growth hinge on effective government expenditure strategies.

#### Slide 7: References
- Mankiw, N.G., 2021. *Principles of Economics*. Cengage Learning.
- Blinder, A.S., & Solow, R.M., 1973. *Analytical Foundations of Keynesian Economic Theory*. The American Economic Review.
- Keynes, J. M., 1936. *The General Theory of Employment, Interest, and Money*. Harcourt Brace and Co.

---

### Multiple-Choice Questions

#### Questions
1. **What does the Keynesian model suggest about government spending?**
a) It does not affect aggregate demand.
b) It decreases total output.
c) It increases aggregate demand.
d) It only impacts long-term growth.
**Answer**: c) It increases aggregate demand.

2. **In the Keynesian model, government spending is represented by which letter?**
a) C
b) I
c) G
d) X
**Answer**: c) G

3. **The multiplier effect indicates that an increase in government spending will lead to:**
a) A proportional increase in income.
b) A greater increase in total output than the initial spending.
c) No increase in overall economic activity.
d) Increase in taxes.
**Answer**: b) A greater increase in total output than the initial spending.

4. **True or False: In the Keynesian model, government spending is considered a part of the aggregate demand equation.**
**Answer**: True.

5. **True or False: According to the Keynesian perspective, higher government spending during a recession can help reduce unemployment.**
**Answer**: True.

6. **The impact of government spending is always immediate and does not vary based on economic conditions.**
a) True
b) False
**Answer**: b) False.

7. **Government spending affects which of the following in the Keynesian model?**
a) Only consumer spending
b) Only business investments
c) Aggregate demand as a whole
d) Interest rates
**Answer**: c) Aggregate demand as a whole.

8. **An increase in government spending should lead to what in the short term, according to Keynesian economics?**
a) Decrease in inflation
b) Increase in aggregate supply
c) Increase in aggregate demand
d) No impact on the economy
**Answer**: c) Increase in aggregate demand.

9. **True or False: The Keynesian model supports the idea of balanced budgets during an economic downturn.**
**Answer**: False.

10. **In the Keynesian framework, where does government spending primarily exert its effects?**
a) On the supply side of the economy
b) On the aggregate demand side of the economy
c) Only in the long run
d) Exclusively through taxation
**Answer**: b) On the aggregate demand side of the economy.

Feel free to modify any parts of the presentation and questions according to your group's preferences or additional guidelines.

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