Double Entry Journal #9

1. Why is inflation less of a concern in the new world economy?

It is not nearly a problem because a less inflation-proned environment has been created by technological revolutions in the past and present.  Economies are able to predict and combat inflation much easier than before.

2.What is the difference between a negative feedback economy and a positive feedback economy?

Negative feedback is whenever equilibrium is restored at a lower level of demand.  It's lt's limited by short-term supply-and-demand constraints.  Positive feedback is when additional capacity becomes available so quickly and inexpensively that traditional supply restraints become unimportant.

3. Give an example of how new technologies can provide developing countries with an opportunity to catch-up with modern economies?

I think being able to combat and predict inflation would definitely help development of developing countries.

4. What is one prediction the author made concerning the new economy that appears to be true?

Everything is so interconnected.  If there is a problem in one spot, it ripples to the next and the next.....

5. Why is excessive trust in free-market economies promoted by free-market fundamentalists a cause for concern?

There are no regulations, not ways to control the economy.

6. Read and Link to a Website that provides information about regulation and markets. Based on the information provided in the website, what is your position on markets and regulations? Then list two questions you have about markets and regulation.

http://www.policymic.com/debates/3924/government-regulations-help-markets-work-better
I think that regulation is important, but too much.  It's important to have rules and boundaries in a market.

1. What effects do regulations have on the economy?
2.  How strict are certain regulations?

7. What is the cause of the crisis of complexity in the new world economy?

The long list of stresses that come along with the population increase .  It spews complexity.