Question

According to the Solow model of growth, growth, in the long run (the steady-state), determine only...

According to the Solow model of growth, growth, in the long run (the steady-state), determine only by growth in technology. However, in the Solow model, there is nothing about how technology determined. What factors do you think might affect technology in the long run? Justify your answer and explain the implications to the growth in the long run?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Technology is affected by government laws and regulations in sector as well as hypercompetition based forces which might force particular set of technologies to fade off and shut down.

For example 2G network proliferated in 2014 however due to excessive demand for speed and rise of Telecommunications giants and excessive deregulation we see advent of 5G network by 2020.

This helps build positive implications like faster growth amd seamlessness. It helps elimination of redundancies however cost of incubation and innovation is large initially.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
According to the Solow growth model, why do all countries tend to converge to a steady...
According to the Solow growth model, why do all countries tend to converge to a steady state?
what are the main conclusions of the solow growth model, explain steady state as part of...
what are the main conclusions of the solow growth model, explain steady state as part of your answer?
In the Solow growth model of an economy with population growth and technological progress, the steady-state...
In the Solow growth model of an economy with population growth and technological progress, the steady-state growth rate in output per worker is equal to: (a) zero (b) the rate of technological progress g. (c) the growth rate of population n plus the rate of technological progress g. (d) the rate of technological progress g minus the growth rate of population n. In the Solow growth model of an economy with population growth and technological progress, the steady-state growth rate...
What is the “steady state” in the Solow growth model? How is it reached from some...
What is the “steady state” in the Solow growth model? How is it reached from some other initial situation in which the conditions required for the steady state are not satisfied?
Use the H-augmented Solow model to determine the a) instantaneous impact on GDP per capita, b)...
Use the H-augmented Solow model to determine the a) instantaneous impact on GDP per capita, b) instantaneous impact on consumption per capita, c) long-run impact on GDP per capita, d) long-run impact on consumption per capita, e) impact on long-run GDP per capita growth rate, and f) impact on long-run GDP growth rate of a permanent and instantaneous increase in the fraction of national resources devoted to investment in human capital, sh. Assume the country begins at its steady state...
In the steady state of the Solow model, higher population growth leads to a  _________ level of...
In the steady state of the Solow model, higher population growth leads to a  _________ level of income per worker and  _________ growth in total income.
In the solow growth model, the steady-state growth rate of output per worker is ________ (a)...
In the solow growth model, the steady-state growth rate of output per worker is ________ (a) equal to the sum of the rate of technological progress plus the rate of population growth (b) greater than zero (c) equal to zero (d) less than zero
Which of the following statements about the Solow growth model is FALSE? A. The higher steady-state...
Which of the following statements about the Solow growth model is FALSE? A. The higher steady-state capital per capita, the higher the output/income per capita. B. The higher output/income per capita, the higher consumption per capita. C. Golden-rule capital per capita must be a steady state, but not all steady-state is also a golden-rule. D. Golden-rule capital per capita can be achieved by setting the saving rate at the appropriate level.
According to the Solow growth model, all the following is true except: a) A country with...
According to the Solow growth model, all the following is true except: a) A country with a lower population growth rate (all else the same) will have a higher level of output per person in the long run. b) Less developed countries will tend to catch up with rich countries in output per-person if they have comparable rates of saving, depreciation, and population growth c) The growth rate in output per person is higher if a country is farther away...
According to the Solow growth model, what are the two general ways a country can grow...
According to the Solow growth model, what are the two general ways a country can grow in the long run? Explain each in complete detail, and use graphs to demonstrate each.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT