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Macroeconomics Assignment Final - Farrukh WKhan - Spring23

This document outlines the instructions and questions for a macroeconomics final assignment. It provides details on formatting, submission instructions, and a due date of June 21st, 2023 at 11 PM. The assignment contains 4 questions that assess understanding of key macroeconomic concepts like aggregate demand and supply, national income accounting, monetary policy tools, and fiscal policy tools. Students are asked to define terms, explain economic models, and apply models to analyze different policy scenarios under recessionary and inflationary output gaps. Graphs and diagrams may be included to support answers. Plagiarism is prohibited and submissions will be checked using Turnitin.

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Junaid Memon
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21 views2 pages

Macroeconomics Assignment Final - Farrukh WKhan - Spring23

This document outlines the instructions and questions for a macroeconomics final assignment. It provides details on formatting, submission instructions, and a due date of June 21st, 2023 at 11 PM. The assignment contains 4 questions that assess understanding of key macroeconomic concepts like aggregate demand and supply, national income accounting, monetary policy tools, and fiscal policy tools. Students are asked to define terms, explain economic models, and apply models to analyze different policy scenarios under recessionary and inflationary output gaps. Graphs and diagrams may be included to support answers. Plagiarism is prohibited and submissions will be checked using Turnitin.

Uploaded by

Junaid Memon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Assignment Final – Spring 2023

Department of Business Administration

Subject: Macroeconomics Submission Date/Time: 21st June 2023, 11 PM


Instructor: Farrukh Wazir Khan Marks: 8 Marks

Instructions

1. Write your answers in a Word / PDF file and upload the file before the due date on
Blackboard.
2. Write your name, registration ID and assignment number on the first page of your
Word / PDF file.
3. Assignment answer scripts can be uploaded on Blackboard any time before due date of
21st June 2023, max time 11PM. Kindly, do not wait for the last hour to avoid any
unforeseen problems.
4. Submission of assignment will be considered acceptable through Blackboard ONLY.
Therefore, do not submit your document through email or any other medium.
5. Use 12 pt. font size and Times New Roman font style along with 1-inch page margins.
6. In case of graphs, if drawn by hand, ensure these are clearly labelled and image(s)
copy/pasted to the appropriate answers of assignment document.
7. Do not copy answers from the internet or other sources. Plagiarism, if any, of your
answers may be checked through Turnitin.

Page 1 of 2
Macroeconomics Final Assignment

Q1.

Define and explain the following macroeconomic concepts and explain their impact on
understanding an economy :
A. The purpose of the model of Aggregate Demand, Aggregate Short-run and Long-run Supply.
B. The significance of National Savings and the use of national income accounting identities.
C. Money, it’s functions and measures of M1, M2, M3.
D. The Central Bank and it’s functions.

Q2.

Use the model of Market of Loanable Funds to explain, illustrate and interpret your observations
of the the following policies :
A. When government borrows to finance a budget deficit.
B. When government announces investment incentives.

Q3.

Define and explain the difference between :


A. “Crowding - out Effect” vs “Multiplier Effect”
B. “Private Saving” vs “Public Saving”
C. “Supply of Loanable Funds” vs “Demand of Loanable Funds”
D. “Open economy” vs “Closed economy”
E. Determinants that shift “Aggregate Demand” vs “Long-run Aggregate Supply”
F. “Trade Surplus” vs “Budget Surplus”
G. “Wealth Effect” vs “Exchange Rate Effect”

Q4.

A. What are the tools available for the ministry of finance under a Fiscal Policy? How are these
applied to achieve policy measures under following business cycle conditions :
(i) Recessionary Output gap (ii) Inflationary Output gap
(iii) With an mpc of 0.50 and an output gap of Pak$ 200bn, calculate how to close the gap in
both scenarios (i) and (ii) above.
Support your answers to above using the Keynesian AE Model and the AS/AD model.
B. What measures does the governer of SBP use to implement the Monetary Policy?
apply these to achieve policy measures under following business cycle conditions :
(i) Recessionary Output gap (ii) Inflationary Output gap
Support your answers to above using grahical illustration of the three panel diagram of
“Monetary Transmission Mechanism”.

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