ECO 2117 Lecture Notes - Lecture 3: Gross Domestic Product, Walt Whitman Rostow, Free Market
12 Mar 2018
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Lecture 3: classical theories of economic growth and development. Four approaches: linear stages of growth model, theories and patterns of structural change, neoclassical, free market counterrevolution. According to rostow, the transition from underdevelopment to development can be described in terms of a series of steps or stages through which all countries must proceed: Harrod-domar growth model (sometimes referred to as the ak model) exam question. A functional economic relationship in which the growth rate of gross domestic product (g) depends directly on the national net savings rate (s) and inversely on the national capital-output ratio (c ) Capital-output ratio: a ratio that shows the units of capital required to produce a unit of output over a given period of time. Net savings ratio : savings expressed as a proportion of disposable income over some period of time. Equation 3. 7 is also often expressed in terms of gross savings, in which the case of the growth rate is given by.
