Candidates should answer ONE of the two following long questions. It is essential that you explain...

 

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Candidates should answer ONE of the two following long questions. It is essential that you explain your answers. 13. a) How can we represent the Solow model graphically? (6 marks) b) How does the Solow model show that the process of capital accumulation can generate economic growth? Can growth be indefinite if savings keep increasing and there is no technological growth and a constant population growth? (8 marks) c) Discuss the effects of an improvement in technology in the Solow model. Focus on its effects on living standards in the short run and in the long run. Show this graphically. (8 marks) d) How does the Solow model differ from Romer's model? What is the long-run growth rate of output per worker in each of the models? What does this imply in terms of policy? (8 marks) Candidates should answer ONE of the two following long questions. It is essential that you explain your answers. 13. a) How can we represent the Solow model graphically? (6 marks) b) How does the Solow model show that the process of capital accumulation can generate economic growth? Can growth be indefinite if savings keep increasing and there is no technological growth and a constant population growth? (8 marks) c) Discuss the effects of an improvement in technology in the Solow model. Focus on its effects on living standards in the short run and in the long run. Show this graphically. (8 marks) d) How does the Solow model differ from Romer's model? What is the long-run growth rate of output per worker in each of the models? What does this imply in terms of policy? (8 marks)

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Ill provide concise responses to each of the subquestions a The Solow model can be represented graph... View the full answer