According to the alternative approach (heterodox) towards economic production th

Question

According to the alternative approach (heterodox) towards economic production the only real scarce factor is time. Money, being a credit/debit relationship, cannot, by definition, be scarce. Nor is capital or resources scarce but reproducible. This conception is dramatically different from the conventional approach and thus its conclusions are also dramatically different. What are these conclusions?

What does this mean for unemployment, price stability, distribution, growth, etc.? What does it imply about increasing the wellbeing of all US citizens? What can these conclusions tell us about the economic possibilities of today? What do knowledge, technology and positive feedbacks have to do with our current economic possibilities? If money, capital and resources are not obstacles what kinds of obstacles do we face in improving the material wellbeing for all citizens from this perspective?

Explanation / Answer

Answer:

Heterodox approach towards economic production the only real scarce factr is time. Money besing a credit and debit relation ship. This concept is dramatically different fro the conventional approach an thus its conclusions are also dramatically different.

Full employement prevails when all of an economy resources are utilized to capacity.but most discussion turmns on the unemployment of people. Unemploment refers to involuntary idleness od mainly labour force and other productive resources. Unemployment is closely related to the economy aggregate output.higher the unemployment rate greater the divegence between actual aggregate output and potential output.

Price stability means the absence of inflation or deflation not the absence of changes in relative prices in particular market.In reality overall price level changes are not often likely to be zero. Not only do our price indexes fail to reflect some improvements in product quality that in effect lower certain price, but more important, price charges reflect the push and pull of market forces as changes occure in supply and demand.

Economic Growth means producing increasing amounts of goods and services over the long term. if the people of society want to raise their level of living, they must produce more goods and services.If the population is growing the amount prodice must be still greater to provide for the additional people.this is why changes in total GDP per capita are usually more meaningfullthan changes in total GDP as measure of Growth.

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