Explain how each of the following examples illustrates one of the three principles of economy-wide interactions.

a. The White House urged Congress to pass a package of temporary spending increases and tax cuts in early 2009, a time when employment was plunging and unemployment soaring.

b. Oil companies are investing heavily in projects that will extract oil from the

“oil sands” of Canada. In Edmonton, Alberta, near the projects, restaurants and other consumer businesses are booming.

c. In the mid-2000s, Spain, which was experiencing a big housing boom, also had the highest inflation rate in Europe.