- C20 What Does The Term Creative Destruction Mean In A Schumpeterian Growth Model What Determines The Growth Rate O 1 (41.12 KiB) Viewed 50 times
C20). What does the term 'creative destruction' mean? In a Schumpeterian growth model, what determines the growth rate of productivity? How does this compare to the mechanism driving growth in the Solow model with technological progress? (18 marks) C2(i). For each question, identify the statement as True or False. You will receive 1 mark for correctly identifying the statement as True or False (please circle the correct answer) and 3 marks for an explanation of your answer. You may use verbal or diagrammatic explanation as appropriate. Please note explanations should not exceed 5 lines. C2(ii.). When we add rational expectations to the 3-equation model, the predictions of the model changes. (4 marks) True or False? Briefly explain your answer. C2i.b). There is no difference between Tobin's a theory of investment and permanent income hypothesis (PIH). (4 marks) True False C2(1.c) The IS curve becomes flatter with a fall in the marginal tax rate that decreases the size of the multiplier. (4 marks) False True