Using observed thread activity to dynamically tune a virtual machine for responsiveness

One embodiment of the present invention provides a system that uses observed thread activity to dynamically tune a virtual machine for responsiveness and/or throughput. During operation, the system observes the activity of a thread to determine whether the thread needs responsiveness and/or throughput. Next, the system gathers statistics for the thread based on these observations of thread activity, and then uses these statistics to dynamically tune a virtual machine upon which the thread will execute.