Economic Exam 2 Essay Example | Topics and Well Written Essays - 500 words

Economic Exam 2 - Essay ExampleFor example, he proposed a speculation in regard to labor and value (Schumpeter 21).Schumpeter came up with a hypothesis base on Marx capitalist economy principles in which he stated that economies can evolve, create new structures and destroy old structures. In his regard governments posed the greatest risk when it comes to economy destruction (Schumpeter 59). He was right because, most government evolved from commie or monarchies to democratic governments but still go to war with each other.Keynes theory on macroeconomics to a fault known as Keynesian economics focuses on the total expenditure in an economy and the pitch the expenditure has on inflation and an economys output (Kennedy 196). In Keynesian economics, decisions made by both public and private institutions affect the output of an economy. Classical theory of economics has it basis concentrate on on the concept of free-market economies. The main difference between the two economic th eories is the influence of government on an economy. The Keynesian economic theory is reliant on the expenditure and policies of governments but the classical economic theory makes the assumption that there is a free-market (Kennedy 199). Another difference between the two theories is that Keynesian economics theory works on providing short-term results for an economy while classical economic theory focuses on providing semipermanent solutions for economic problems.Q.4. Characteristics of Anglo-Saxon capitalism and how does it differ from European and Asian capitalism? Which is the better example of Anglo-Saxon capitalism, the U.S. economy or the British economy?The main characteristic of the Anglo-Saxon capitalism model is that it operates based on common law with a judicial system which contemplates minimal government interference in the economy (Pryor 107). The difference between the Anglo-Saxon capitalism model and the