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