1. Considering Tradeoffs You Make Every Day" Let's talk about two tradeoffs we face every day: how we spend our time and money. We can only do two things with income: spend it or save it. Time is the ultimate resource. We can choose to spend time working to earn an income or we can do other things, broadly classified as leisure. Reply to these prompts to start your discussion: How does a change in interest rate affect your decision to spend or save? How would a change in the interest rate affect a firm's decision to invest or save? How might an increase in the wage rate affect what you do with your time? Now describe a tradeoff you’ve made in terms of time or income. Talk about tradeoffs with your peers: Reply to one peer who made a tradeoff to which you can relate. Discuss and compare your decisions.

2."Is the GDP Still Accurate in the Digital Age?" What the GDP measures, if anything, has become quite the issue in the digital age. Consider this data: In 2012, U.S. Real GDP was $15,345.63 billion and Real Per Capita GDP was $48,842 billion. Five years later, at the end of 2017, U.S. Real GDP was $17,096.18 billion and Real Per Capita GDP was $52,446 billion. (All data was extracted May 20, 2018, from FRED https://fred.stlouisfed.org/.) Read this blog, GDP: Falling Short, to help you answer this week’s discussion questions. Reply to these questions in your response: Considering the data above, did the U.S. make progress? Explain your answer. Given what you know now about economics, should the measure of GDP be changed? Why or why not? Talk with a peer:

3."Using the Rate of Inflation to Make a Decision" In Chapter 4 of The Little Book of Economics, Ip talks about the natural rate of unemployment as the rate of unemployment that will not lead to an acceleration in inflation. Keep this reading in mind as you respond to this week’s discussion questions. Think about this: If the current unemployment rate is 3.9%, would one expect the rate of inflation to increase or decrease? Explain your answer. Now you face a wonderful decision. Imagine that you just won a lottery jackpot of $100,000. If you expect inflation to accelerate, should you buy that home you’ve been thinking of now? What would you decide if the rate of inflation is negative

Answer rating: 100% (QA)

1 Interest rates have a major impact on the level of expenditure of any person When the interest rates are high it is easy to find you not willing to spend much a cost of any action one takes is also ... View the full answer