lesson: Solow Growth Model - explaining differences in economic growth rates (chapter 8)

1. Draw the functions in the Solow growth model.

2. Explain the law of diminishing returns

3. Find the steady state equilibrium in the Solow growth model

4. Distinguish between "catch-up growth" and cutting-edge" growth

5. Use the Solow growth model to explain why developing nations can grow faster than more developed nations

6. Explain the theory of conditional convergence.

7. Use the Solow model to demonstrate how an increase in investment and capital accumulation increases living standards

lesson: Solow Growth Model - examining sustainability of economic growth Chapter 8)

1. Explain why capital accumulation cannot explain continuous growth over the very long run

2. Use the Solow model to demonstrate how an increase in technology can increase living standards.

3. Explain why ideas do not have to experience diminishing returns

4. Give the assumptions and prediction of New Growth Theory

5. Discuss issues that can threaten continuous growth

6. Analyze an economies growth rate over time using the Solow growth model.