1. Last time we dealt with the impact of the Coronavirus pandemic on the American economy. You were asked to evaluate what effect 22 million lost jobs (now up to 26 million!) would have on the
Circular Flow of Economic Activity. This time we will evaluate the United States governmental
response to that huge unemployment number
In order to stimulate the economy Congress passed legislation and the President signed into law
an order that would send one-time direct payments of $1,200 to all American workers making
less than $75,000 a year. The payments started arriving in bank accounts this summer.
-Using the Circular Flow of Economic Activity as your guide, evaluate what the federal
government hopes to achieve by giving citizens money. In other words, what does the
government assume people will do with the extra money and how will this help businesses and
actually reduce unemployment?
-Do you think this program will be successful and why?