Macroeconomics I: Solow Growth Model

The production function relates inputs to output.

Diminishing returns to each input.

It has the property of constant returns to scale.

<p>Macroeconomic value-added, i.e. the production of goods and services net of intermediate inputs.</p> Signup and view all the answers

<p>The increment to output obtained from hiring one more unit of an input, holding all other inputs and technology constant.</p> Signup and view all the answers

<p>To understand the long-run determinants of living standards, study transition dynamics of an economy, and quantify the sources of growth.</p> Signup and view all the answers

<p>The production structure of the economy, the process by which factor inputs evolve, and the process by which technology evolves.</p> Signup and view all the answers

<p>Gaining basic insight into the determinants of living standards and how an economy might grow over time.</p> Signup and view all the answers

<ol> <li>Understand the long-run determinants of living standards. 2. Study transition dynamics of an economy within the context of a neoclassical framework. 3. Quantify the sources of growth in a relatively simple growth accounting framework.</li> </ol> Signup and view all the answers

<p>The evolution of both labor and technology.</p> Signup and view all the answers