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Why does income growth persist in the two-sector endogenous growth model?
Why does income growth persist in the two-sector endogenous growth model?
- Saving rate exceeds the rate of depreciation.
- Fraction of the labor force in universities is large.
- Creation of knowledge in universities never slows down. (correct)
- Production function shifts exogenously.
What plays a significant role in sustaining income growth in the two-sector endogenous growth model?
What plays a significant role in sustaining income growth in the two-sector endogenous growth model?
- Increased investment in physical capital.
- Continuous creation of knowledge in universities. (correct)
- High level of government spending.
- Technological advancements in the production sector.
Which factor distinguishes the two-sector endogenous growth model from other economic models?
Which factor distinguishes the two-sector endogenous growth model from other economic models?
- Prominence of knowledge creation in universities. (correct)
- Presence of multiple production sectors.
- High level of international trade.
- Emphasis on environmental sustainability.
What aspect of labor force allocation is emphasized in the two-sector endogenous growth model?
What aspect of labor force allocation is emphasized in the two-sector endogenous growth model?
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What factor contributes to the sustained technological progress in the two-sector endogenous growth model?
What factor contributes to the sustained technological progress in the two-sector endogenous growth model?
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