Solow model is important because it implies that O An economy that uses the neoclassical production function cannot grow at a positive rate forever. All the answers are implications of Solow model. An increase in savings results in a higher long-run economic

ENGR.ECONOMIC ANALYSIS
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Solow model is important because it implies that
An economy that uses the neoclassical production function
cannot grow at a positive rate forever.
All the answers are implications of Solow model.
An increase in savings results in a higher long-run economic
growth.
Heterogeneous economies will absolutely converge so that poor
countries can catch-up rich countries in long-run.
Transcribed Image Text:Solow model is important because it implies that An economy that uses the neoclassical production function cannot grow at a positive rate forever. All the answers are implications of Solow model. An increase in savings results in a higher long-run economic growth. Heterogeneous economies will absolutely converge so that poor countries can catch-up rich countries in long-run.
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