In the Solow model, the ________ plays a ________ role than it does in the standard production function model.
A) labor supply; larger
B) productivity parameter; larger
C) capital stock; larger
D) capital stock; smaller
E) productivity parameter; smaller

Question

Quizplus · Accepted Answer

In the Solow model, the productivity parameter (often represented as technology or total factor productivity) plays a larger role because it affects the long-term growth rate of the economy, unlike in the standard production function model where capital accumulation is the primary focus.

In the Solow Model, the ________ Plays a ________ Role

In the Solow Model, the Plays a Role