Applying Economic Concepts
1. Automatic Stabilizers What automatic stabilizers have benefited you or your family in the recent past? Could you have managed without them?
2. Multiplier Provide an example of how a $100,000 expenditure in your community would have a magnified effect as described by the multiplier.
3. Diversity of Opinion Some economists favor policies that stimulate demand, while others favor those that stimulate the supply of goods and services. Still other economists prefer policies based on the growth of the money supply. With which group of economists do you agree? Provide reasons to support your choice.
4. Monetary Policy The Federal Reserve System conducts monetary policy. At one time or another, most presidents have complained about the independence of the Fed. Do you think this independence should be maintained, or that elected officials should have more control over monetary policy? Support your answer.
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