Dec 13 2011
Podcast: Time is Money
Over the weekend I watched the new Justin Timberlake movie, In Time. In this edition of Welker’s Wikinomics Podcast I analyze the movie’s basic premise from a macroeconomic viewpoint.
Listen to the podcast, and then answer the discussion questions at the bottom of this post.
Discussion Questions:
- Why does increasing the supply of money cause the demand for goods and services to rise?
- Why does increasing the supply of money ultimately cause the supply of goods and services to fall?
- When would an increase in the money supply be most inflationary, when an economy is producing close to its full employment level or when an economy is experiencing a recession? Explain.
- With the help of a money market diagram and an aggregate demand / aggregate supply diagram, illustrate the effects of Will and Silvia’s re-distribution of time on the Ghetto’s economy.
- According to Friedman, expansionary monetary policy cannot contribute to a nation’s long-run economic growth. What types of government policies can be implemented to promote economic growth in a nation?
Podcast Credits:
- Intro song: The Rolling Stones – Time is On My Side
- Ending song: Pink Floyd – Money
- Milton Friedman quotes – Donahue, 1980
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