Week9disiscussion section

Week9disiscussion section - Economics 21 Spring 2008 Week...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Economics 21 Spring 2008 Week 9: Discussion Section These questions relate to an article by Paul Krugman which appeared in “The Dismal Science” 8/13/98 and which you can find on BB. It is a great, great, article from a time when Paul Krugman was writing mostly about economics, before the Bush Administration drove him crazy. 1) Why did the babysitting co-op fall into recession and how was the recession ended? Script supply was too small causing AD for sitters to be lower. People saving script so people can’t earn more script(unemployment) All acting rational but still ending in a recession. It was ended by allowing people to borrow scripts they issued more scripts out. Not enough coupons. Everyone wanted to save coupons and babysit so noone could hire themselves out as babysitters. Saving is good for the future and bad for the could hire themselves out as babysitters....
View Full Document

This note was uploaded on 04/07/2008 for the course PHI 101 taught by Professor Finberg during the Spring '08 term at Swarthmore.

Page1 / 2

Week9disiscussion section - Economics 21 Spring 2008 Week...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online