Data Bases • Custom Term Papers • Free Term Papers • Free Research Papers • Free Essays • Free Book Reports • Plagiarism? Links • Top 100 Term Paper Sites • Top 25 Essay Sites • Top 50 Essay Sites • Search 97,000 Papers @ DirectEssays.com • Search 101,000 Papers @ ExampleEssays.com • Search 90,000 Papers @ MegaEssays.com Free Essays • Term Paper Sites • Chuck III's Free Essays • Free College Essays • TermPaperSites.com • My Term Papers • Get Free Essays • Essay World • Planet Papers	Search Lots of Essays Back to Subjects - Economics econimic research econimic research 1. During the 1960's, The Soviet economy may have been growing at a rate of growth much faster that the West, but the Soviet GDP would have provided a poor statistic for determining the welfare of the soviet people for several reasons. The first reason that GDP would be obsolete for determining the welfare of the people is that during the 1960's, the Soviet Union was in fact Communist, so the people were only allotted whatever property or privilege the government would allow, so there was no "free market" on which goods could be bought and sold by anyone. It is also of interest to know that during the 1960's and early 70's, the USSR did lead the world in a few industries(forestry, mining), but with such a larger labor force than the US, the GDP per capita would, all other things being equal (ceteris paribus), show that growth could have occurred solely due to larger population. 2. If the Instructor were to choose a fixed rate, he would hope that inflation would increase, so that he would be paying back money that has a lower purchasing power than the original principal amount the instructor would have financed, (just as in the scenario He had given about his Father in Maryland, and his mortgage held with the sinister bank who detests the fact that your Father has a fixed rate mortgage and pays around $300 a month). If our Instructor chose the adjustable rate, the instructor would think that inflation would decrease, and would also hope that interest rates would decrease as well. Since Alan Greenspan is somewhat unpredictable, I would advise the instructor to refinance for a fixed rate once interest rates take a turn for the better, so that it would be locked in at the lowest going rate available. 3. Changes in Production by Black Death(Bubonic Plague) in Medieval Times Land Land Labor(pre-Plague) Labor(post-Plague) B. Wages for the workers would increase due to the decrease in labor pools caused by death. C. The surviving workers benefited from this disaster due to the increase in wages available due to the untimely death of so many. The wealthy landowners would have been overall harmed by the loss in manual labor, which caused less productivity and yet higher wages could be demanded by the surviving workers out of necessity for needed labor, while the rental(capital) rate of the land decreased according to the isoquant. 4. The differences in the policy recommendations between these two groups of Economic advisors would greatly differ. The group who believes in coordination failures as a main cause of business cycles would probably apply the "Pareto Prin- cipal" in which 80% of the problem comes from 20% of the causes(the consumers, and their fear of spending that lead to a recession in this scenario). I think that the coordination failure advisors would implement a policy akin to "trickle-down" economics or "Reaganomics" in an effort to encourage spending and investing by consumers by allowing tax breaks and "priming the pump", thus spurring the consumers to spend, causing the aggregate demand to rise, businesses would begin to invest again, and hopefully ends the recession. I think that the Pareto improvement that they would try to sustain would be to avoid recession by this encouraged spending by consumers and solving the problem at the lowest possible On the other hand, the advisor group that thought that the main causes of business cycles were Technology Shocks do not have a short-run solution to defeat a recession because of the lack of innovation in productivity of the workforce. The Pareto concept that would be envisioned in an attempt to correct the recession in the Technology Shock group would try to find "special causes" for a basis of corrective actions as to why there are declining trends, and attempt to take actions to improve trends, but without technological innovations(which may never come about due to a lack of spending and investment by consumers and businesses) there will be no short-run solution to a recession. Bibliography: schemerhorn et al, Economics and you, harcourt an dbrace 1991 Word Count: 674
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