Question

Does the different theories of economoc growth (such as the neoclassical growth theory and the endogenous growth theory) effectively explained how technical progress influences economic growth?

Answer 1

The neoclassical growth theory states that the short-term equilibrium as a result from the different amount of labour and the capital in the production function. This theory has an argument that technical change sports a major influence on the country's economy and the growth of the economy can not without any advancement of technology. Technological process refers to the new Discovery and methods improved in production of goods.Change of technology leads to increase in the labour productivity and capital productivity.economist of the endogenous growth theory believes that improvements in the productivity are able to be tied directly to Quikr Innovation and for the more investment in the human capital. In our economy which is knowledge based defects from the investment made in technology and the people keep on generating The returns. Increase of the capital quality affect the growth. Major method of increasing the quality of capital is by progress of technology.advancement of technology allows a unit of capital to edappal a unit of labour increased its production.