3. In the Solow model with technical progress, capital shallowing can occur because of Question 3...

3. In the Solow model with technical progress, capital shallowing can occur because of

Question 3 options:

	depreciation.
	technological growth.
	population growth.
	all of the above.

According to the Solow model with the technical progress, the expected co-efficient for saving is

Question 4 options:

	1.47
	0.5
	-0.5
	1.91

Solutions

Expert Solution

3). The correct option is (a).

Depreciation.

As we know that in Solow's model the technical progress is labour augmenting. It affects the model in same way as population growth does. The capital shallowing is measured by the growth in capital input over the growth in labour input. If capital input grows slower than the growth in labour input, then the amount of capital per worker declines. This is known as capital shallowing.Capital shallowing occurs because old capital depreciates, or becomes completely obsolete with the passage of time.

4). Dear student due to incomplete question I cannot answer the second question. It needs equation to solve....

Kindly comment the equation I will provide you the answer..

Thanks...

The Solow model is an exogenous growth model of economic growth that determines changes in the level of output in an economy over time as a result of changes in the population.

Rahul Sunny answered 6 months ago

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