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The article I want you to read isat the very top and is called Baby-Sitting the Economy by Paul Krugman: http://www.slate.com/articles/business/the_dismal_science/1998/08/babysitting_the_economy.html Below is two of

The article I want you to read isat the very top and is called "Baby-Sitting the Economy" by Paul Krugman:

http://www.slate.com/articles/business/the_dismal_science/1998/08/babysitting_the_economy.html

Below is two of many question that needed help base on the reading (link above)

  1. Krugman imagines that the co-op might have eventually allowed couples to borrow extra coupons and repay them later. Which concept that we learned in our class does this relate to the most? What does allowing for borrowing add to the economy?
  2. Why did the low amount of scrip lead to a recession? Name one way the co-op might have responded that would have caused the recession to turn into a depression. Describe in a few sentences how the Great Recession is different from this recession.

I am not clear about the two questions, please help. Thank you.

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