Which of the following choices represents the sources of growth identified by the Solow growth model Y = F(A, K, eL)?
A) capital stock, knowledge and ideas, and labor (skilled and unskilled)
B) capital stock, technology, and skilled labor only
C) capital stock, depreciation, and human capital
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

The Solow growth model identifies three sources of growth: capital stock, knowledge and ideas, and labor (skilled and unskilled). Choice A correctly lists all three sources, while the other choices either include incorrect factors (B and C) or exclude important factors (B only includes skilled labor, while the model considers both skilled and unskilled labor).

Which of the Following Choices Represents the Sources of Growth