Question 1) According to Keynes, "In market economies depressions are caused by the exhaustion of investment opportunities and the rigidity of saving." Explain. Would it be fair to say that the Say's law is eventually prone to break downs in a market economy? Why so? Why according to Keynes and Kalecki does such a problem not exist under command systems?
Question 2) What is the Short run/Keynesian Philips curve? How does Friedman's concept of the long run Philips curve refute the idea of the short run/Keynesian Philips curve? What is the connection between the long run Philips curve and the Natural rate of unemployment? (Diagrams needed).
Question 3) Explain (in detail) why according to Marx, capitalism as a system is inherently flawed? [Explain the periodic economic crises in capitalism, (all 3 kinds), how capitalists resort to solve them in turn paving the way for a bigger crisis. Equation needed. Make sure you stick to economic arguments pertaining to profit rates, surplus values, technology etc]
Question 4) The economist Joan Robinson had once said, "The miseryof being exploited by capitalists is nothing compared to the misery of not being exploited at all". Explain the following statement.
Essay Question) "Future historians may well write the epitaph of our civilization as follows:
From command and tradition came stagnation and stability
From liberty and science came rapid growth and change.
From rapid growth and change came economic instability.
From instability came demands which ended growth and change.
Ending growth and change ended science and freedom."
Discuss this alleged conflict between economic growth and measures to secure economic stability by referencing the major economists such as Adam Smith, Malthus, Ricardo, Mill, Marx, Keynes, and Friedman. Extra Credit
In his introduction to The Idea of Justice, Amartya Sen asks the reader to imagine a scenario where three children are arguing among themselves about which one of them should have a flute. The first child, Anne, is a trained musician who can make the best use of the flute. The second child, Bob, is the poorest of the three and owns no other toys or instruments. Clara, the third contender, happens to be the one who, with hard sustained labor, made the flute.
Part I) Who do you think deserves the flute and why? [Points will be allocated on the basis of the justification provided and not the mere choice of a kid]
Part II) which kid (and why) would the followings economists give the flute to? Adam Smith, Malthus, Ricardo, Bentham, J S Mill, Marx, Keynes,Friedman.