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- 7. Explain how the Solow growth model differs from models of endogenous growth with respect to the sources of technological progress. Give at least one policy implication of the Endogenous growth models.4 Explain the central paradox at the heart of the Solow model, with constant and exogenous technologies. Given this paradox, why is the Solow model still relevant?5. When was the Solow growth model developed and what was significant about that period? What did it predict that was significant at the time? When was the endogenous growth model developed? What did researchers observe the world that led to its development? What is the main feature that differentiates the two?
- 3) The purpose of exogenous/endogenous growth theory is to explain technological progress. Some of these models do so by questioning the Solow model's assumption of increasing/diminishing/constant returns to capital.11. Alter the Solow growth model so that the pro- duction technology is given by Y= zK, where Y is output, K is capital, and z is total factor pro- ductivity. Thus, output is produced only with саpital. (a) Show that it is possible for income per person to grow indefinitely. (b) Also show that an increase in the savings rate increases the growth rate in per capita income.What are the implication of economic growth that relate with Solow growth and Endogenous growth?
- which statement \s are true. use graphs to exlain a. In the Solow growth model, the saving rate is a crucial determinant of the economy's long-run growth rate of output per worker. b. In the endogenous growth model , the representative firm sets the wage so that the demand and supply of efficiency units of labour are equal. c. In the endogenous growth model , there is no steady state of the economy as human capital will always continue to grow forever. d. The assumption of Constant Returns to Scale technology implies that the marginal product of factor imput is always decreasing.Consider the endogenous growth model with two sectors: manufacturing firms and research universities. Which of the following affect/s the steady-state growth rate of output in this model? (i) stock of knowledge (ii) fraction of labor force in universities (iii) saving rate O a. Only (ii) O b. Only (iii) O c. Only (i) O d. (i), (ii), and (iii)In the framework of endogenous growth theory, which of the following mechanisms is primarily responsible for sustained economic growth without the necessity of external inputs?a) The accumulation of physical capital through savings and investment.b) Technological innovation and the knowledge spillover effect.c) Increases in labor supply through population growth.d) Exploitation of natural resources and raw materials.Uploading 3rd time. Again and again got ai answer. Please provide valuable answer
- Consider a two-sector model of growth, with two kinds of investment opportunities one with a diminishing marginal product and one with a constant marginal product. A. Characterize the set of equilibria for this model. Does output in any of the equilibria have nonzero per capita- growth? B. What can this model help us explain that strict endogenous and neo-classical growth models cannot?4. Explain how and why we need to extend the standard Solow model of long-run economic growth to account for the climate crisis. Critically discuss the extended model and different solutions to the climate crisis.8.Consider the empirical evidence on the Solow growth model when the population growth rate, depreciation and savings rate is the same across countries and when technological progress has the same rate in all countries. a.The Solow growth model cannot be tested for a large set of countries because it requires knowledge of each country’s steady state. b.The Solow growth model is supported by unbiased data for a small sample of countries over a long period of time. c.The Solow growth model is supported because they catch up with technological investments d.The Solow growth model is not supported by a large sample of countries over a short period of time.