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ยป There are three "phases" of an exponential growth curve in economics: Phase One: In the first phase, an economy is growing at a fast rate. This is known as the "early stages" of an economy. It is a time when technology and human capital is developed, but not widely used and expanded. This early stage is characterized by a large influx of new (inexperienced) workers and capital into the economy. Phase Two: In this stage, existing technology and human capital are expanded and added to. The more capital and technology that is produced and used, the faster the growth rate accelerates. This is also known as the "advanced stages" of an economy. It is the time when the "mass market" of a country is reached. Phase Three: This is the final stage, which lasts for the longest period. When an economy is in this stage, everyone has been using the existing capital and technology for a long time. The capital and technology has become "stale", yet the economy is in the midst of an aging population. With more and more people working to keep up with the costs of technology and capital, there is a lack of capital to expand and increase the market size. This ends the expansion stage of the economy. The next stage that the economy goes into is the "stagnant stage", which lasts from one to two generations. The trend of an economy is determined by the stage in which the economy is currently in. Economic changes take place for the better when the economy is in the growing stage. Economic changes take place for the worse when the economy is in the stagnant stage. Phase One: In the First phase, the economy is growing at a fast rate. It is the time when technology and human capital is developed and is in use. When the economy is in the first phase, there is a large influx of new (inexperienced) workers and capital into the economy. Phase Two: During the Second phase, technology and human capital are expanded and added to. The more capital and technology that is produced and used, the faster the growth rate accelerates. It is also the time when the "mass market" of a country is reached. Phase Three: The final stage, which lasts for the longest period. In the third phase, the economy has an aging population. With more and more people working to keep up with the costs of technology and capital, there is
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