The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

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The Solow growth model suggests that the standard of living of a country can continue to increase in the long run only if there is sustained increases in total factor productivity (TFP). TFP is essentially the portion of output growth that is not explained by increases in capital or labor. Therefore, sustained increases in TFP allow for sustainable long-term economic growth and an increase in living standards. Increases in government spending, population, labor force, and capital stock may have short-term effects on economic growth and living standards, but they are not sustainable in the long run without corresponding increases in TFP.

The Solow Growth Model Predicts That a Country's Standard of Living