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Econ paper question 1

Econ paper question 1 - correlation to how much ‘flour’...

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The benefits of the Five-year plan were that the Soviet Union went from being a country of peasant farmers, to a industrialized super power. The problem with this is that 20 million people starved to death or were killed to enforce the Five- Year Plan. On one axis (vertical) is 'guns' (aka gov't goods) on the other axis is ‘flour’ (aka private consumption). Stalin’s Five-Year Plan moves the intersection of the PPF closer to the origin on the ‘flour’ axis and moves the point farther away on the ‘guns’ axis, insinuated that the more guns you produce has a direct
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Unformatted text preview: correlation to how much ‘flour’ you produce. For part ‘B’ of the question, the reason that the Five-Year Plan won’t produce long run growth is because if you drastically reduce the amount of supply of a country now so that you can save it for later you will consequently have a very negative effect on your population because of a lack of food and supplies. While this plan does a fine job of creating industrialization it doesn’t not do a good job of taking into consideration the well being of the countries people....
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