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