The economy will contract (shrink) if leakages exceed injections. Do you agree with this statement? Why or why not?
Describe the relationship between unemployment and real and nominal wages. Which is more important and why? What effects would either an increase or decrease in unemployment have on wages?
Some economist believe that Fiscal Policy can affect swings in the business cycle. Looking back to the book, it discusses the Japanese government and their government cutting taxes. Do you believe the Japanese were right or wrong to use Fiscal Policy in that manner? Why or why not?
Discussion Board #4
Why is universal acceptability such an important characteristic of money? What other characteristics can you think of that might be important to market participants? What do you think might happen if we go away from money to a total electronic payment system? Discuss.
Do you advocate an active or passive policy approach? Why? Why might an active policy approach be more popular than a passive approach, especially during a recession? Discuss
Final Discussion Board
Review and reflect on what you learned in the past 8 weeks. What is the most practical and easily applied lesson you learned? What was the hardest to grasp? Why? What else do you need to know about Macroeconomics?
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