ECO 2117 Lecture Notes - Lecture 6: Walt Whitman Rostow, Eurocentrism, Marshall Plan

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It re ects an argument-based view of the how and why of an economic system. Arguments are based on intuition, logic, and evidence (theoretical and empirical) Theories focus on main elements and ignore others (as the real world is complex) As our understanding progresses, old theories are revised and new theories are developed. Understanding the intuition (words): a theory is based on a speci c idea which can be explained in simple terms. Jargon (words): a theory can be explained using the economists" terminology. Graphs: certain aspects of a theory can be summarized in a graph. Formal models: expressed in algebra and is a concise/abstract expression of the relation between explanatory factors and their outcomes. Capital accumulation and investment in physical and human capital increases capital stock" quality and quantity. Growth of population and labour force which creates larger domestic demand. Technological process which is labour/capita saving and augmenting.

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