Monday, August 15, 2011
I need help with this debate about the economy?
I will begin with Keynes business cycle theory showing them that the business cycle occurs because of government spending, too many or too little. Then, i will show them the multiplier effects. If the government increases its spending during bad time, called stimulous package, it will increase income = new spending x multiplier. It will increase employment, and pull the economy back on track. What bad about it is also obvious that someone uses government money for their bonus. Bad executives, when go unpunished, it bad for all of us because the government's money is coming from debts, or new money that we have to pay back later, or suffering from higher inflation.
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