Question: 1. What was the gold standard and why was it a problem in the great depression?
2. What event kick started spending by the US government in 1941?
3. In your own words, write about whether or not you think government spending in time of economic turmoil improves the economy. What effect does spending have on the circular flow?
4. What are some good that are regulated by the free market? what would happen if those goods had a set minimum price?
5. Think of some examples where the government subsidizes good or services.