Consider a two-sector model of growth with two types of investment opportunity one with diminishing marginal product and one with constant marginal product What does the production function for this problem look like? Characterise the set of equilibria for this model. Does output in any equilibria have non-zero per capita growth What can this model help us to explain that strict endogenous and neoclassical growth models cant

Answer rating: 100% (QA)

The Solow Growth Model is an exogenous model of economic growth that analyzes changes in the level of output in an economy over time as a result of ch... View the full answer