Oranges=60 cents/Average Consumer Demand=2

Oranges=40 cents/Average Consumer Demand=4

Eventually, even if individuals have less money to spend due to a rising national unemployment rate, micro economic theory suggests that producers will have to price their goods so cheaply, that demand, production, and thus employment will all increase. However, this has not always proved

the case, as when one's personal employment seems uncertain, consumers are apt to hoard their savings. This is a wise personal or micro economic decision, but is unwise for the national economy as a whole. This means that production, no matter how low producers set prices, is never stimulated by a corresponding rise in demand. Goods pile up, and more workers are laid off.

Other tools for the government to stimulate economic growth lie in the hands of the Federal Reserve. The Federal Reserve can lower interest rates, to encourage consumption and borrowing, rather than saving. Conversely, the Federal Reserve often lowers the interest

Some common words found in the essay are:
Demand=4 Eventually, Federal Reserve, , government spending, Demand=2 Oranges=40, micro economic, federal reserve, micro economic theory, tax cuts, national economy, cents/average consumer, economic theory,
Approximate Word count = 431
Approximate Pages = 2 (250 words per page double spaced)