ECONOMICS 2;THE CONSUMPTION FUNCTION

ECONOMICS 2;THE CONSUMPTION FUNCTION Learning 1) To be able to collect relevant macroeconomic data. Outcomes: 2) To convert the data into a meaningful economic concept. 3) To appreciate the importance ofthe consumption function in explaining economic fluctuations Task: 1) Collect quarterly figures for the UK economy over at least 5 years consumption expenditure and Gross Domestic Product (GDP). Tabulate the figures. (5 marks) 2') Prepare a scatter diagram of consumptioni‘GDP data pairs. (3 ma 3) Produce a line of best fit from your scatter diagram to construct a consumption function. (5 marks) 4) Label and discuss the economic relevance of your consumption function. (2 marks) 5) State and discuss the most important determinants of short-run consumer expenditure. (5 marks) Need a correctly labelled diagram. References required. Grade Descriptors will be as SQA Handbook and submissio sheets S_QA Diploma Assignment Format - Staff Guidelines 1. Semester (one or two - delete as necessary) 2. Assignment (Insert number) 3. Module: (Insert name of module 6, g Accounting One)) 4. Assignment Title (Insert name that provides a broad aim I the assignment, for example A review of market segmentation”) 5. Assignment Type (Individual/Group - will generally be individual but for SQA purposes we should note this) 6. Word Limit (Specify a suitable word limit unless the assignment is mostly made up of numbers) 1000 - 1500 w