Recent orders
Suppose that when everyone wakes up tomorrow
Suppose that when everyone wakes up tomorrow, they discover that the government has given them an additional amount of money equal to the amount they already had. Explain what effect this doubling of the money supply will likely have on the following:
a. the total amount spent on goods and services
b. the quantity of goods and services purchased if prices are sticky
c. the prices of goods and services if prices can adjust
Suppose Americans decide to save more of their incomes
Suppose Americans decide to save more of their incomes. If banks lend this extra saving to businesses, which use the funds to build new factories, how might this lead to faster growth in productivity? Who do you suppose benefits from the higher productivity? Is society getting a free lunch?
In what ways is your standard of living different
In what ways is your standard of living different from that of your parents or grandparents when they were your age? Why have these changes occurred?