Response to Questions
Questionone-are models the real representations of the actual world problem andsolution.
Despitethe fact that models can play a crucial role in determining theshortcomings in the future, these efforts are not accurate due to thechange in the environment (Wartofsky,2012).Models are highly dependent on the current status and accommodate theadverse changes that are likely to take place in the future. Thedisadvantage of using models is the unpredictability of the futureenvironment that reduces the accuracy level of the model (Gray,2013).Therefore, models only try to estimate a probability of the possibleoutcome but they cannot tell what will happen in the future.
Therefore,models can only be used to assess the situation in the future, butthey cannot entirely be depended on, due to their lack offlexibility. As much as models are vital, it should be assumed thatthey are only images and they have a less meaning in the fate of ourfuture. Typically, models are not real representations of the world’sproblem and solution, but they only try to give us a clue of what weshould expect.
Questiontwo-what was the original intent of this government intervention?
Consideringthat the causes of the high rates of unemployment and businessbankruptcies were various related factors, the United Statesgovernment intended to restore peace with her neighbors. Also, thecountry had lost international coordination that the governmentattempted to restore (Crafts,et al. 2013).The government understands that one of the pillars of their economyis the international coordination since they have to export theirproducts to other countries. The original intention of the governmentwas to bring back its economy back to normal and ensure that thecitizens do not fall victim of inflation (Allen,2015).
Microeconomicand macroeconomic effect of the government intervention.
Oneconspicuous macroeconomic effect of the government intervention wasthe fall of prices of food stuff, especially wheat. This had asignificant impact on the household level (Robbins,2011).Besides, the macroeconomic effect of this intervention was that thegovernment ensured economy sustainability to the future since it didnot want a similar situation in the future (Stuckler,et al. 2012).
Allen,F. L. (2015). SinceYesterday: The 1930s in America, September 3, 1929–September 3,1939.Open Road Media.
Crafts,N., & Fearon, P. (Eds.). (2013). thegreat depression of the 1930s: lessons for today.Oxford University Press.
Gray,D. E. (2013). Doingresearch in the real world.Sage.
Robbins,L. (2011). Thegreat depression.Transaction Publishers.
Stuckler,D., Meissner, C., Fishback, P., Basu, S., & McKee, M. (2012).Banking crises and mortality during the Great Depression: evidencefrom US urban populations, 1929–1937. Journalof epidemiology and community health,66(5),410-419.
Wartofsky,M. W. (2012). Models:Representation and the scientific understanding (Vol.48). Springer Science & Business Media.