Question

Summarize Solow’s view on the present state of macroeconomics

Answer 1

Solow's growth model consider as an exogenous model of economic growth.Because it tries to analyzes the output of the economy over time based on the variations in the population,technological development ,saving level etc.It tries to say that in the long run there is no growth, if countries are having same level of population ,saving and capital. They will have only steady state. But countries with differnt saving, population and capital they have differnt steady growth.

This is very much visible at present situation developed countries are having steady growth level due to steady population ,technology etc in under developed countries are having different steady growth. due to the variation in population ,technology,saving etc.