1. Explain why the Solow model with population growth and human capital
helps to better understand the differences in growth, the catch-up phenomenon for
developing countries and differences in GDP between countries. Also give an example of
phenomenon that the model cannot explain.

Answer rating: 100% (QA)

The Solow model with population growth and human capital often referred to as the extended Solow model provides a more comprehensive framework for understanding economic growth and differences in GDP ... View the full answer