My favourite how different the "home budget" and a national economy works is if you want to save some money for a trip you just stop spending a bit and keep the extra money in a savings account until needed. If an economy did that then the economy will contract, reducing peoples spending power and income.
It's like you're saving for you holidays and your hourly rate goes down because of it.
It's like you're saving for you holidays and your hourly rate goes down because of it.