Week 9: Discussion 2

Week 9: Discussion 2

1) Create an analogy that would help someone not at all familiar with economics to understand the connection between unemployment and inflation.

Let us consider that a Person A has $ 50 with him. This means that he can only spend $ 50 rupees. Whereas a Person B who has $100 rupees can buy double of the products which Person A can buy. If Person A & B both spend all their amount, the amount will be transferred to Person C who now has the capability of buying thrice of the products than Person A. Where ...