The theory says it is so, all other things held equal.

On Wed, Aug 19, 2009 at 06:20:49PM -0700, David B. Shemano wrote:
> >> Basic economic theory says this should happen, and it does.  Why is
> >> this so hard to understand?
> 
> Basic economic theory says what?  If the government spends more money the 
> unemployment rate decreases?  What if I found a situation where the 
> government spent more money and the unemployment rate went up?  What would 
> happen to the theory?
> 
> David Shemano
> 
> 
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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