Economics Coursework-Spreadsheet File on Moodle
Section 1 (30 marks)
(a) Use data in the coursework spreadsheet file on Moodle, to produce a chart showing the link between quantity of money (on the horizontal axis), and price level (on the vertical axis), for UK.
(b) Use data in the coursework spreadsheet file on Moodle, to produce a similar chart for USA.
(c) Use data in the coursework spreadsheet file on Moodle, to make a similar chart for the country allocated to you (in the spreadsheet on Moodle).
Section 2 (70 marks)
Write an essay to answer all three of the following questions:
(a) Explain the ‘Quantity Theory of Money’, and explain some recent discussions of this theory in textbooks and/or academic journals.
(b) To what extent do your three charts from section 1 support, or reject, the ‘Quantity Theory of Money’?
(c) Examine whether available evidence (including your charts) suggests a government can control inflation, by controlling the money supply.