1. SECTION: Economic Reforms List Deng’s Four Modernizations 2. Why must a Nation have Government Spending in Science and Technology BEFORE it can improve the general economy? 3. What will automatically occur to the Chinese GDP when this Spending occurs? 4. Para 3 quotation: What did Deng believe had to be permitted to work with Central Planning to improve the Chinese economy? 5. Para 8 Which group would write the plans for the economy? 6. Para 9 What were the local municipalities encouraged to do? 7. Were the Products made for Chinese citizens, or Foreigners? 8. How would this be a benefit to the Chinese economy Hint: GDP Equation “Net Exports: 9. Para 10 From where was the Capital to invest in heavy Industry to come? 10. So, EXPLAIN why was important for the new Businesses to pay the Chinese Workers higher wages so they would have “Savings” in the “Financial Sector” of the Circular Flow diagram. (Octopus chart)

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