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Development Economics
» Economic Growth 2 »
The Solow Model 4 – Productivity
» The Solow Model 4 – Productivity - Practice Questions
The Solow Model 4 – Productivity - Practice Questions
1. Overall, the Solow Model is ____________________________ with the stylized facts of economic growth.
*
inconsistent
consistent
neither a. nor b.
2. One issue with the Solow Model is that most of the growth is in fact explained by __________, and not capital accumulation.
*
labor differences (L)
economies of scope
productivity differences (A)
