Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Illustrate neo-classical growth model?
The main purpose of another significant growth model, neo-classical growth model, is to explain how it is possible to have a permanent growth in GDP per capita. The model was developed by Robert Solow in 1960s and it is sometimes known as the Solow growth model or the exogenous growth model.
Neo-classical growth model must not be confused with the neoclassical synthesis. 'Neo' means 'new' - the neo-classical growth theory is a 'new version' of the classical growth model.
Crucial difference between classical and neo-classical growth model is that population is endogenous in the former and exogenous in the latter. In the classical model, population will increase or decrease depending on whether GDP per capita is higher than or lower than survival level. In the neo-classical model population growth isn't affected by GDP per capita (though the population growth will affect the growth in GDP per capita).
In the neo-classical model, it's the technological progress only that affects GDP per capita in the long run. We will have a permanent increase in GDP per capita when there is a technological development which increases productivity of labour. Permanent growth in GDP then requires continuous technological progress.
It isn't possible for the government, except temporarily, to affect growth rate in the neo-classical growth model. Government may be able to affect GDP per capita (and so is the growth rate) however the growth rate always returns to the level determined by technological progress. The same is true for savings. An increase in savings may have a temporary effect on GDP though it will have not any effect in the long run.
Describe the relation of money with wealth and income It is very possible to have a high income but no money and no wealth, or to be very wealthy and have a lot of money but no
Over long spans of time, macroeconomies typically grow, but over short spans there are fluctuations in output and prices known as ____ ?
What is the relationship between quality, consumption and demand for health care services?
distinguish between state and dynamic multiplier and illusrate balanc budget theorm in hindi
Malaysia’s Bank Negara has cut the country’s economic growth forecast to between 4 and 5 percent for 2012, weighed down by Europe’s economic woes. Discuss ONE (1) demand-management
y=vk ?k=s*f(k)-(?+n)k saving rate 28% population growth of 1% Have y persistent size s, n, g and ?function
In the long run A. price and output levels are mutually dependent. B. the level of output depends on the price level. C. the level of output is independent of the price level.
Listed here are several examples of bad, or at least questionable, decisions. Evaluate the decision maker's approach or logic. In which of the six decision steps might the decision
Money is anything which is acceptable in settlement of a debt. But, paradoxically, the main asset used to settle debts in modern economies is other debts. After all, bank deposits
conditions for steady state in solow model.in what respects is golden rule different from steady state?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd