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

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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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

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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