Deficits, Approaches and Systems

Critically evaluate and respond to the following three questions:

• Despite decreased state spending after the collapse of command economies, most governments ran deficits. Explain the cause of these deficits. Are transition economies still running deficits? Support your response with at least one credible source. (25 points)

• How does the evolutionary approach help economists study transition in ways that the “big bang” does not? What useful perspectives does the evolutionary approach provide?  Support your response with at least one credible source. (25 points)

• A dominant theme of socialist economic thought has always been the desirability of reducing income differentials. Although there are both theoretical and practical difficulties in measuring income inequalities across different economic systems, does the available evidence support the view that income inequality was less in planned socialist systems than in market capitalist systems? Discuss. Support your response with at least one credible source. (25 points)

Each response should be approximately one page in length for a total length of 2-3 pages. Your paper should be well written and formatted according to APA Requirements. Cite at least three credible course other than the required textbook.