EC207 Lecture 3: Ch 3 note
Document Summary
Md: bring pencil, multiple choices and short answer. 1930s, great depression, high unemployment, surplus labour, need to get rid of this excessive labour. Typical stages: start as agriculture exon, consume man you produce, increase savings, start manufacturing, entrepreneur do innovative, export, saving increase, investment increase, income from stable econ sector, service sector and take off, more develop country, eat and massive consumption. Pupa to butterfly stage substance to develop yourself: take off: crucial stage, able to s and i at least 15%-20%, can use this s to agriculture. This is called stages of development: stage 1: traditional society rural and agriculture, stage 2: transitional stage, stage 3: take-off, stage 4: drive to maturity, stage 5: high mass consumption era. Investment gap or financing gap, need foreign aid to fill this gap. It"s good but not sufficient condition, other things also important, how productivity, edu, etc.
