16:56 Ma'am, actually I don't know Malayalam but it seems like for the income level OM, it's okay that, stimulants is HA but how is the shocks AB?? I am confused B is not the corresponding point on shocks curve. Why MA line is not extended to find a point on shocks curve and from that point a vertical line Parrarel to y axis is drawn upward so that it touch the blue line to find the corresponding shocks of income OM??
Don't be confused. First try to understand the theory. The diagram is only the explanation of the theory. In this theory the economist is not trying to find out the corresponding income of shocks. It is explained that why economy is slipped down to low level equilibrium trap with below minimum investment. Point B touch the shock curve by slipping down from the stimulant curve. It can't go straight or upward because that is against the concept explained in this theory. According to this theory if stimulant [ha ]is smaller than shocks[ ab] there is a gravitational pull to the low level equilibrium trap .so the curve would slip down to point B on shocks curve which leads to low level equilibrium trap. So a critical minimum investment is needed to achieve economic growth.If the economy is investing that critical minimum level ,OK would be the corresponding percapita income of the economy which leads the economy to a development stage.
Yes, the concept is clear but the diagram seems to be confused. What I want to say is that for income level OM there will be corresponding stimulants and shocks. For stimulants we measured it using a corresponding point on the stimulant curve (a) but for shocks B is not the corresponding point on the shock curve. It is imperative to know which one is greater shocks or stimulants for the growth of the economy from my POV. Otherwise we will not be able to know whether the economy is within the vicious circle of poverty. I am asking this because even in my textbook it is drawn like this video.
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16:56 Ma'am, actually I don't know Malayalam but it seems like for the income level OM, it's okay that, stimulants is HA but how is the shocks AB?? I am confused B is not the corresponding point on shocks curve. Why MA line is not extended to find a point on shocks curve and from that point a vertical line Parrarel to y axis is drawn upward so that it touch the blue line to find the corresponding shocks of income OM??
Don't be confused. First try to understand the theory. The diagram is only the explanation of the theory. In this theory the economist is not trying to find out the corresponding income of shocks. It is explained that why economy is slipped down to low level equilibrium trap with below minimum investment. Point B touch the shock curve by slipping down from the stimulant curve. It can't go straight or upward because that is against the concept explained in this theory. According to this theory if stimulant [ha ]is smaller than shocks[ ab] there is a gravitational pull to the low level equilibrium trap .so the curve would slip down to point B on shocks curve which leads to low level equilibrium trap. So a critical minimum investment is needed to achieve economic growth.If the economy is investing that critical minimum level ,OK would be the corresponding percapita income of the economy which leads the economy to a development stage.
Hope this concept is clear now.
Yes, the concept is clear but the diagram seems to be confused. What I want to say is that for income level OM there will be corresponding stimulants and shocks. For stimulants we measured it using a corresponding point on the stimulant curve (a) but for shocks B is not the corresponding point on the shock curve. It is imperative to know which one is greater shocks or stimulants for the growth of the economy from my POV. Otherwise we will not be able to know whether the economy is within the vicious circle of poverty.
I am asking this because even in my textbook it is drawn like this video.
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Mam very help full and good class
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Super class 😍
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All important points are there in this note.10 mks avumbo kurachukuudi elaborate cheytho👍