Solow Growth Model
Not what you're looking for?
Using the Solow Growth Model describe long run growth in an economy. Explain why an economy should strive to reach its golden rule steady state level.
Purchase this Solution
Solution Summary
This solution discusses the Solow Growth Model.
Solution Preview
The Solow model uses three variables (technological progress, population growth rate, and the depreciation rate) to determine the change in capital per effective worker (k). Technological progress increases the number of effective workers at rate g, growth of technology, which would cause capital per effective worker to fall at rate g. At the steady state, output per worker is constant; however total output is growing at the rate of n, the rate of population growth, and k is constant (has zero growth rate) by definition of the steady state. At steady state, MPK -d = n+ g, where MPK is the marginal product of ...
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.