In the endogenous growth model presented in the text, suppose that u represents the fraction of time spent working (as opposed to accumulating human capital), b represents the efficiency of
Human capital accumulation, H represents the amount of human capital, and z represents the
Marginal product of efficiency units of labour. Consumption equals

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Quizplus · Accepted Answer

In the endogenous growth model, consumption is typically represented by the output produced, which is the product of the marginal product of efficiency units of labor (z), the fraction of time spent working (u), and the amount of human capital (H). Thus, consumption equals zuH.

In the Endogenous Growth Model Presented in the Text, Suppose