Compare the effect of an increase in the savings rate on the growth rate of Y/L...

Compare the effect of an increase in the savings rate on the growth rate of Y/L and K/L in the Solow model and the AK endogenous growth model.( Distinguish between short-run and longrun effects on the growth rate.) What accounts for the difference?

Expert Solution

Both the exogenous solow model and endogenous Ak model is being explained with increase in savings rate

Rahul Sunny answered 2 years ago

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