Two important economic growth drivers are a country's rate of savings and its rate of technological progress. Using the Solow framework, explain the effects of (1) an increase in the saving rate and (2) an increase in technology on output per person during the transition and in the very long term.

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The Solow Model and Growth Drivers Savings Rate and Technology The Solow growth model helps us understand how factors like savings and technology impa... View the full answer