At the height of the housing crisis in the US, in 2009-2010 the Government decided for a temporary extension of unemployment benefits to 99 weeks, from the standard six months. In parallel way, during the Covid time, millions of unemployed seek the same kind of benefits.

a) What do you think of this decision? What are the positive and negative impacts of this decision to the society and the overall economy?

b) How would J.M. Keynes react to this extension?How would a Classical Economist say about it?

c) Look for statistics sources such as BLS.gov (or other online sources), and check for the current level of Unemployment rate and Inflation rate in the US, and then compare to the level of unemployment and inflation in the year you were born. How do they change and what major economic events happened during those years?

d) Along with the Unemployment Benefits, during the Covid time, as well as previous recessions, the Government poured in billions of dollars to stimulate the economy through various programs (to individual taxpayers as well as small, medium, and large businesses). According to you, how does the increase in government spending on those programs might or might not have effect on Inflation? State two other factors that might contribute to the inflation. Then look at two of your most favorite things, check the change in prices from a year ago.