Derive in full the neoclassical growth model in effective labour terms and hence construct the Solow diagram. Prove that
Posted: Mon Apr 18, 2022 9:18 am
Derive in full the neoclassical growth model in effective labour
terms and hence construct the Solow diagram. Prove that the long
run per capita growth rate is equal to the rate of technological
progress. Using the Solow diagram, explain the short run effect of
a rise in the population growth rate. Explain what is meant by
time-inconsistency and use an AD-AS diagram to show how political
business cycles may thus be generated.
terms and hence construct the Solow diagram. Prove that the long
run per capita growth rate is equal to the rate of technological
progress. Using the Solow diagram, explain the short run effect of
a rise in the population growth rate. Explain what is meant by
time-inconsistency and use an AD-AS diagram to show how political
business cycles may thus be generated.