ECS1601 ECONOMICS 1B ASSIGNEMENT 3 2021
WITH WORKINGS AND EXPLAINATIONS.
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CALL O618441387 FOR FURTHER ASSISTANCE, EXAM NOTES, PACKS,
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3.1 In the simple Keynesian model, which one of the following statements is
incorrect?
[1] Spending may be equal to production and income.
[2] Spending may be greater than production and income.
[3] Spending may be greater than production, but smaller than income.
[4] Spending may be less than production and income.
Total production, income and spending are identically equal in the national
accounts. The national accounting system is essentially a bookkeeping
system which is used to measure economic activity after it has occurred.
Economists often use the Latin term ex post to denote that measurement
occurs after the event (or after the fact). The ex post equality of total
production, income and spending in the national accounts is guaranteed by
the way in which these concepts are defined
3.2 The consumption function is based on the premise that as income increases,
consumption expenditure …
[1] increases by a larger amount.
[2] increases by the same amount.
[3] remains constant unless saving also changes.
[4] increases by a smaller amount.
, 3.3 Which of the following assumptions for the simple Keynesian model of a closed
economy without a government are correct?
a) The economy consists of households and small firms only.
b) There is no foreign sector.
WITH WORKINGS AND EXPLAINATIONS.
100% GUARANTEED
CALL O618441387 FOR FURTHER ASSISTANCE, EXAM NOTES, PACKS,
EXAM ASSISTANCE, LESSON ETC
3.1 In the simple Keynesian model, which one of the following statements is
incorrect?
[1] Spending may be equal to production and income.
[2] Spending may be greater than production and income.
[3] Spending may be greater than production, but smaller than income.
[4] Spending may be less than production and income.
Total production, income and spending are identically equal in the national
accounts. The national accounting system is essentially a bookkeeping
system which is used to measure economic activity after it has occurred.
Economists often use the Latin term ex post to denote that measurement
occurs after the event (or after the fact). The ex post equality of total
production, income and spending in the national accounts is guaranteed by
the way in which these concepts are defined
3.2 The consumption function is based on the premise that as income increases,
consumption expenditure …
[1] increases by a larger amount.
[2] increases by the same amount.
[3] remains constant unless saving also changes.
[4] increases by a smaller amount.
, 3.3 Which of the following assumptions for the simple Keynesian model of a closed
economy without a government are correct?
a) The economy consists of households and small firms only.
b) There is no foreign sector.
