Use what you learn to evaluate the following statement:

"I propose that we hire all of the unemployed people as government workers and pay half of them to dig holes and the other half to fill them back up. This way everyone who wants a job can have one!"

Using what you learned in the video, evaluate the following statement:

"The unemployment rate is high and therefore it is time to stimulate the economy! I propose that we use tax dollars to pay car dealers to destroy older cars and send them to the dump. This will cause people to buy new cars which will increase economic activity and put us on the path to recovery."

Using what your learned in the video, and taking into accountthe secondary effectsof the September 11, 2001 terrorist attacks on the World Trade Center and the Pentagon, analyze the views of economist Paul Krugman in the following statement:

"Ghastly as it may seem to say this, the terror attack -- like the original day of infamy, which brought an end to the Great Depression -- could even do some economic good....the destruction isn't big compared with the economy, but rebuilding will generate at least some increase in business spending."