Principles of Macroeconomics / Unit 4 MAC 0321 short lesson, about 20 seconds
Why Convergence Might Happen
Captions available
The idea
Two forces push toward convergence. Capital pays more where it is scarce, so investment does more in a poor country. And copying existing technology is cheaper than inventing it.
In practice
A country adopting proven methods can skip the decades spent discovering them.
Where people slip
The second force has a name worth remembering: the advantages of backwardness.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Something wrong in this lesson? Flag it · Sources for Principles of Macroeconomics