화곡동 2

0:00

S… Speaker 1 (화곡동 2)

future. So that every year demand becomes less. When you are not consuming, demand goes down or not? Why you are not consuming? You are holding some money. For what? Future profit. It happens or not? Nowadays also we hold money or not? Holding money means what? Like if you are just buying a gold, that is what? And just keeping inside your vault, that is holding the money.

0:32

S… Speaker 1 (화곡동 2)

It means you are just thinking that one day the price will increase and you will get what? Many. That is what? What is the mean? This is dead capital. Last time the many ministers showed there how much, see, how much gold we have. It means this capital is what? Dead capital. This is the capital, but holding the capital. Getting my point?

1:05

S… Speaker 1 (화곡동 2)

This is if you have lots of gold, what you are doing with that gold? Nothing, isn't it? You are not doing anything with that gold. When we learned about the Korean economy, the gold helps for progress of what? Progress of Korean economy. So even though we have lots of gold, but we are not using it means what? We are just keeping in gold.

1:40

S… Speaker 1 (화곡동 2)

If you are holding, your income is not, neither is entering for investment nor for what? Consumption. That is holding on. That's why aggregate demand becomes what? Aggregate demand becomes less. At the first time, J.M. King's talk like that, there should be role of government and they say, the aggregate demand should be C plus I plus G.

2:15

S… Speaker 1 (화곡동 2)

Listen, C plus I plus G. So aggregate demand is shifted. See, if the aggregate demand shifted, Q2 is what? Total output is also shifted. And the condition of depression was disappeared from the equilibrium. Getting my point? So this idea, you are thinking that, oh, this is a very funny idea, very simple idea. But during that time, more than decades people are suffering. No one has an idea.

2:48

S… Speaker 1 (화곡동 2)

And one simple idea, solve the economy. That's why investment. Here G means government investment. And they say that to remove the Great Depression, government should what? Invest on infrastructure and then

3:16

S… Speaker 1 (화곡동 2)

People get income and when people get income, they try to what? Consume goods and services. So further investment is possible and further employment is. It means the right answer is what? B. Kinsey theories. Next. According to demand model, economic growth mainly depends on what? Definitely, this is what? It remains the what? Constant, pure capital output.

4:02

S… Speaker 1 (화곡동 2)

Ratio is reference what? Constant. So saving and investment is the right answer. Okay? I am talking you don't take pictures. Fitting my points? Don't be over smart. Next, I am to mark both equation is what? Try to log. Many times I am talking you try to log. Option A or B. G equals to growth equals to saving by...

4:46

S… Speaker 1 (화곡동 2)

rate of saving by capital output A. Any question?

5:00

S… Speaker 1 (화곡동 2)

Now in Harrod and Drummond equation represents what? Saving rate, spending rate, supply rate, subsidy rate. Saving rate. The growth rate is highly depends on saving rate. Direct relations. Direct relations. Since capital output ratio is what? Fixed. The Harrod and Drummond model represents what? Capital output. In Harrod and Drummond growth model.

5:38

S… Speaker 1 (화곡동 2)

Here it presents capital output ratio. See here. Capital output ratio. So right answer is B. Okay. Any question? If capital output ratio, economic growth will increase, constant 0. If capital output ratio increase, what happens on growth? Inverse proportional relation.

6:22

S… Speaker 2 (화곡동 2)

This is very easy. And even we know that capital output ratio is what? How much unit of capital is required to produce one output? So if the capital source, like 4 is to 1 is what? 4 unit capital is required to produce one unit of market.

7:02

S… Speaker 1 (화곡동 2)

So right answer is what? B decreases. Is it? B decreases.

7:17

S… Speaker 1 (화곡동 2)

If you have any questions, please raise your hand. I will discuss until and unless you get knowledge. Which growth rate represents the actual economic growth rate of country? See, actual growth rate. This is very simple. Actual, actual. The growth rate requires for full utilization of capital is called what? Natural growth. Priority means required growth rate. So simply, if you talk about that is what?

8:01

S… Speaker 1 (화곡동 2)

Varietate growth rate. The maximum growth possible based on labor supply is natural growth rate. Okay? This is just a technical word. Meaning of other word. Okay? So, when you discussed about Harvard and Romal Bhat Madar, these all comes. That's why it goes three, four pages. Isn't it? What is varietate growth rate? What is natural growth rate?

8:31

S… Speaker 1 (화곡동 2)

What is it? Factual growth rate. Guaranteed growth rate means the required growth rate. Is it? Next. The slow growth model. When slow growth rate was... This is important. When you are writing your thesis or what? Research paper. You have to write reference. And in reference, you must know about when slow growth model was introduced. That is 1956.

9:23

S… Speaker 1 (화곡동 2)

Okay, 56. See, the slow growth model emphasizes capital and labor, technology, saving, all of them all. What is the right answer? See, this is the equation of what? Slow growth model. This is the model of what? Slow growth.

10:00

S… Speaker 2 (화곡동 2)

Technology, labor, capital. Capital and investment are saving. All are saving. Right answer is D. This is slow model. See, there is technology or not? There is technology, capital and... Slow production functions is what? What is the slow production functions? ABCD. Sorry. What is the option?

10:45

S… Speaker 2 (화곡동 2)

Most of you are just focusing on writing. That never helps. The answer is here. Y equals to A functions of K and here. That is slow growth model. The right answer is what? B. Simple. This is very simple. This is not difficult to that. You need to write and copy and this. In slow growth model, A represents what? A. See that slow growth model. A represents what? Technology.

11:20

S… Speaker 1 (화곡동 2)

Only if you talk about this is the slow growth model and whenever we are talking about endogenous growth model. Why first one? AK. Here A means what? Again, technology. And K means both. Physical, both. Human capital and if you talk about slow growth model, this is what? External factor. External factor.

12:09

S… Speaker 1 (화곡동 2)

But if you talk, they say that technology determines what? Long term growth. Is that it? Slow growth model also accepted that what? Technological growth determines what? Long term growth. But they say this is the external factor, not the domestic factor. In short term, in short term, it is fixed. It is fixed. It is fixed in

12:44

S… Speaker 1 (화곡동 2)

Short, wrong. Isn't it? But without what? Technological progress, long term growth is not possible. Isn't it? Here if you talk about endogenous growth model. Endogenous growth model, internal factor. Internal factor means what? Domestic, domestic factor.

13:33

S… Speaker 1 (화곡동 2)

is not constant. It is what? Progressive. It is progressive. If you are doing what? Invest on our and isn't it? Human capital means expenditure on education helps to progress our technology. Isn't it? So these are the major slow growth model at what? Indogenous growth model. Isn't it? Slow growth model is

14:18

S… Speaker 2 (화곡동 2)

This is very difficult for you. Without learning these kinds of thermos, you cannot enhance your... So if you really want to study, you have to learn. No other choice. So, simply, here A represents what? Technology. That is the V. Technology.

15:01

S… Speaker 1 (화곡동 2)

The slow growth model assumes what? Increasing returns to capital, diminishing returns to capital, constant returns to capital and negative returns. What? Slow growth model. If you talk about here, this capital, here the capital is the slow growth model in that there is diminishing returns to capital. Diminishing returns to capital.

15:54

S… Speaker 1 (화곡동 2)

Then what happens? There is, per unit capital is very high. If the per unit capital is very high, efficiency goes down. Isn't it? That's why return is what? Diminishing. Isn't it? So, due to the diminishing return of capital, means if you are using more and more capital, per unit capital becomes what? High. So, your efficiency goes down. Isn't it?

16:29

S… Speaker 1 (화곡동 2)

But if you talk about diminishing return, even if you talk about the depreciation as well. Capital goods as well. Depreciation as well. So whatever the performance you are getting your mobile the first year when you bought the mobile and second year, your efficiency is not remain safe.

16:51

S… Speaker 1 (화곡동 2)

because of depreciation of capital. That is one factor. Another major factor is what? When you have lots of capital, you cannot mobilize it. So efficiency goes what? Down. According to slow growth model, they say that since developed nation has what? Per unit capital is very high. But in developing or least developed country, per unit capital is very least. So that

17:20

S… Speaker 1 (화곡동 2)

The efficiency of capital is high in least developed country. Then what? Developed country. Getting my question? So, if you talk about here, the capital is divisive return to what? Divisive return. Why? Here capital is physical capital. When you have a physical capital and you have lots of capital, per unit capital is high for one person, the efficiency goes what? Down.

17:51

S… Speaker 1 (화곡동 2)

Isn't it? Since capital is rival goods, if you have more capital means some other have what? Less opportunity to have a capital. Isn't it? But if you talk about the endogenous growth model, here capital means, this capital means not only the what? Physical capital. Also what? Human capital.

18:26

S… Speaker 1 (화곡동 2)

returns to scale. That is why. What is increasing return to scale? If I am giving you knowledge, if I give you more and more knowledge, it does not need advice is what? Decrease. But if I give you more knowledge means what? The efficiency is increasing. More and more and more. You are sharing other, others are sharing to others. Like how everyone has a mobile. Isn't it? Because of mobile,

19:00

S… Speaker 1 (화곡동 2)

Efficiency is increasing or increasing? Only if you are rational, there is criticism. If you are rational, your efficiency will what? Increase. If you are not, maybe then. But we suppose that the human beings are what? That is the assumption. While making any theories, we must have what? Certain assumptions. And our assumption is what? Human beings is rational. Rational means what? PhD degree. What do you mean by?

19:43

S… Speaker 2 (화곡동 2)

Rational means you try to generate more output here in economics. You try to generate more output by using less as inputs. That is rational efficiency.

20:00

S… Speaker 1 (화곡동 2)

Isn't it? So, if you talk about endogenous growth theories, the growth in capital has increasing return rather than what? Decreasing. Because it is talked about what? Capital means a human capital. Knowledge. Isn't it? So, knowledge has no diminishing return. But physical capital has what? Diminishing return. That's why slow growth model assumes there is what? Diminishing return.

20:30

S… Speaker 1 (화곡동 2)

Okay? But if you talk about the endogenous growth model, there is increasing return because here capital means not only physical capital. So the right answer is what? Divinishing return to capital in slow growth model. This steady state in the slow model means what? Means capital for worker becomes constant. That is steady. This is the maximum level.

21:03

S… Speaker 1 (화곡동 2)

According to slow-growth model, long-run growth depends merely on what? Slow-growth model. Long-run technology. Slow-growth model. Long-run is what? Slow-growth model predicts that poor country may grow faster due to what? Convergence hypothesis. Due to what? See, even in slow-growth model, there are so many hypothesis that we did not discuss yet. Discuss slow-growth model even in the very short.

21:47

S… Speaker 1 (화곡동 2)

If you really want to know in detail, go through the work. Textbook. If you are interested. Because there is lots of mathematical terminology. Mathematics. Without knowledge of mathematics, you cannot understand. Next. Indogenous book. Theory. Immersed mainly in what? Mainly on 1980s. Okay? Mainly on 1980s.

22:30

S… Speaker 1 (화곡동 2)

Okay? C. Endogenous work theory emphasizes external technology, internal domestic factor, population, government spending. What? Yes, internal factor. Because the main role is what? Technology. And technology and human capital. And that is possible through the investment on what? RD and education. Isn't it?

23:16

S… Speaker 1 (화곡동 2)

So it means he realized the development and prosperity is internal factor, not what? External. But slow talk like that what? The long term growth is possible through the technology and technology is what? External. Isn't it? Not internal. So the right answer is B. Internal economic. Any question? Next.

23:55

S… Speaker 1 (화곡동 2)

The concept of learning by doing was introduced by... We all discussed this. See your PPTs. You are not looking even once. Maybe someone has already expired. You cannot know what. It looks very busy. Rumors start from what? See here, all of you. Rumors start from what? So rumors, these all are ABC.

24:38

S… Speaker 2 (화곡동 2)

These three are endogenous growth models. The scholars of endogenous growth models. Romer. Romer is what? Simply start from R. So you have to think research and development. Research start from what? R.

25:00

S… Speaker 1 (화곡동 2)

So Roman focus on what? Research and development. Lucas start from what? Yell. Focus on labor. Means what? Human capital. Lucas Yell. Yell means what? Labor. Focus on what? Human capital. Investment on education. Okay? Arrows talk about learning by you. Okay?

25:31

S… Speaker 1 (화곡동 2)

Slow, never talk learning, you know that, slow. Yes? It means, if Romans, Locust and Slow is not there, any one who is there, that is what? If you check your, all equations is prepared, with the help of PPT that I already provided to you. None of the thing is here. Now, extraordinary. Okay? So, if you see here,

26:03

S… Speaker 1 (화곡동 2)

Arrow is the right answer. Human capital accumulation was emphasized by Lucas. Here label human capital. Very easy. Even though if you want to forget what rumors focused, can you know? If once you understand, rumors focused on what? Research or art.

26:47

S… Speaker 1 (화곡동 2)

Lucas focus on what? Labour. Human capital. Now if you want to forget, can you? That is the step. You have to understand like this. While learning anything. Even though you try to forget, it is not possible. Even if you want to forget this, it is not possible. It means you need a simple technology. Isn't it? Everywhere there is technology.

27:24

S… Speaker 1 (화곡동 2)

If you are not connecting R-R, L-L, then it is okay. So use your smart technology that where you feel comfortable. Human capital is our Lucas. Okay. Next. Romans model emphasized same. Romans, I said what? Okay. It means B. I'm sorry.

28:07

S… Speaker 1 (화곡동 2)

A, K model was proposed by C, that is the value. Okay. In the A, K model, what is the formula of A, K model? A, B, C, D. Yes, Y equals to A, K. Individual growth model emphasizes, sorry, sorry. Individual growth model assumes diminishing return cannot be avoided. Knowledge

29:36

S… Speaker 1 (화곡동 2)

This is a very poor commonsense class.

29:55

S… Speaker 2 (화곡동 2)

Endogenous blood protein cannot be override.

30:00

S… Speaker 1 (화곡동 2)

already avoided. Isn't it? Diminishing return is already avoided. This is why. In physical returns, endogenous growth models, they avoid the what? Diminishing returns, because it is not only the physical capital. It's the what? Knowledge, research. Technology always advanced. So, there is no diminishing return. It can be avoided.

30:27

S… Speaker 1 (화곡동 2)

Isn't it? Since they are using what? Knowledge, idea. So the knowledge and idea. Capital means not only the physical capitals. If you have more capital, if one person have more capital, then there is chances of what? Diminishing return. But if one have more knowledge, is there diminishing return? No. If you have more knowledgeable person, more efficiency, so there is no diminishing return.

30:58

S… Speaker 1 (화곡동 2)

Output is not decreased. Output will be what? Increased. So what is the right answer? Next, technology is fixed. This is slow growth model. I said what? In slow growth model, technology is what? Fixed. Next one is what? No innovation. We always talk about what? Innovation. Research. It means A, C and D is not what?

31:36

S… Speaker 1 (화곡동 2)

A, C and D is no. Even though you don't know what is knowledge spillover, you have to write all. It means even you do not find out what is the meaning of B. All the numbers A, C and D is wrong. Means B is lost. You have to use common sense. Without using common sense, it is not possible. Getting my points? Spillover will be more.

32:32

S… Speaker 1 (화곡동 2)

Why this? Because it is non-rival. Non-rival is never one. It is one. Still over means one. Every word is whole and more. Why this? Because it is non-rival. If I am giving, sharing my knowledge, it does not mean that one. My knowledge is one. Not this reason. But it passed to you. That is spillover. That is spillover.

33:11

S… Speaker 1 (화곡동 2)

My knowledge is, whenever I am sharing something with you, my knowledge is not declining. Isn't it? My knowledge is not declining. Rather what? Isn't it? This is the concept. Knowledge is, theory, is considered, rival, non-rival, limited, private. That's the answer. Knowledge is, knowledge, non-rival means what? If you share something to others,

34:08

S… Speaker 2 (화곡동 2)

It does not mean that you are losing something. For example, if you are sharing money to me, your money declines or not? Then that is called rival. If you are sharing some ideas, your ideas go down? No. So that is called what? Knowledge. So knowledge is non-rival goods. You know, when I came in Korea, I understand one thing. My profession never teaches me. Never.

34:47

S… Speaker 2 (화곡동 2)

Like these things from Korean professors, you never explain. Anywhere you think about university, professors never talk.

35:00

S… Speaker 1 (화곡동 2)

In graduate class like this. Never. Never. Because professor knows. By giving knowledge, no one becomes knowledgeable. Until and unless they try to what? Learn by himself. They never talk. But they talk what? Higher growth model, slow growth model, just a topic name. If someone wants to learn what is in your age, you can learn by yourself.

35:33

S… Speaker 1 (화곡동 2)

You can understand by yourself. And since this is age of interning, you have lots of assets, isn't it? So interested, then graduate school or graduate class means here only interested candidate can learn something. Even I talk a lot from the first to now. If I ask simple questions, I know very well.

36:01

S… Speaker 1 (화곡동 2)

The answer that I talk, written here, many times I talk, if I ask, they say, only because of what? They don't want to lord. So, Indogenous Growth Theory highlights the importance of education and not inflation, not taxes, not trade taxes. The right answer is, so whatever we do, only in

36:57

S… Speaker 1 (화곡동 2)

But now in killing the rights, we have to write by yourself. But you don't need to write more than one word. Okay? So if you talk about here, the economic growth here is the long-term growth of output. Same thing that we discussed. Mercantilist theory dominated during the 16th to 12th century.

37:25

S… Speaker 1 (화곡동 2)

The Harald and Brahman model was developed by Harald and Brahman. The Harald and Brahman emphasized capital accumulations. The Harald and Brahman equation is G equals to S by V. Any question? What is the problem here? It's very easy. You need to write. Do you think that this is the question for graduate students? No. This is not a question for graduate students. But I am making. Only I thought that

38:05

S… Speaker 1 (화곡동 2)

My objective is to give you a plus. Isn't it? That is my objective. So that I am giving you questions, answers and discussing so that you can write in your exam. That is the discussion. But still if you are not getting a plus, this is not my mistake. Okay? Think this is your mistake. And I am sure that if you...

38:29

S… Speaker 1 (화곡동 2)

I think exactly, you will get the past marks. Don't need, don't what? Space for rain. Don't be stressed. Try to learn something. Knowledge is knowledge. Knowledge and hard work never betray you. Only these two things never betray you. All other things betray you. Knowledge and your hard work. Next, any questions?

39:02

S… Speaker 1 (화곡동 2)

The equation SB, S represents saving rate. In the equation G, SBB represents capital output ratio. If saving increases, economic growth will increase. The real growth observed in economy is called actual growth rate. The growth rate that ensures the full utilization of capital is called

39:37

S… Speaker 2 (화곡동 2)

So these are the... Any questions? The point that you want to discuss more?

40:22

S… Speaker 4 (화곡동 2)

Any questions? No? Do you want us to discuss some of the questions? We are very near to you with them. I don't know how much you learn. Learning is only possible until and unless you start by yourself. That depends on anyone.

41:02

S… Speaker 3 (화곡동 2)

You never get anything from others. Okay. The maximum sustainable growth based on the labor supply is called natural growth rate. The slow growth model was introduced by robot flow. The slow production functions y is equal to f, k, l. f, k, l. In slow model, k represents capital. In slow growth model, l represents capital.

41:36

S… Speaker 1 (화곡동 2)

Is it very difficult for you? This type of question is not easy question. It is easiest question ever asked in the history of graduate exam. But if you are not writing these kinds of things, that is a great problem. Great, great, great, great problem. Okay. A represents what? Diplomological progress. In the long run, economics is this one.

42:48

S… Speaker 2 (화곡동 2)

The slow model predicts convergence hypothesis for poorer countries. Convergence means having less unit of capital per person.

43:06

S… Speaker 2 (화곡동 2)

So that efficiency is high. Convergence theory states that the poorer country has more probability for the speedy progress. Why? Because per person capital is less than development. Development relations per person capital is, isn't it? So this is the case. If you want to know more, what is convergence hypothesis?

43:44

S… Speaker 1 (화곡동 2)

Major part is what? To be curiosity for you. So whenever you have some curiosity, try to ask yourself. If you do not understand, then ask with your professor. I will be very happy to explain more and more. So technological study is missing. Technological and convergence. Okay. In the same way. Okay, please come. Is it okay? Please.

화곡동 2

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