According to the neoclassical growth model of Robert Solow, all countries will have the same _____ in the long run.
A) amount of capital
B) labor force
C) productivity levels
D) price levels

Question

Quizplus · Accepted Answer

According to the neoclassical growth model developed by Robert Solow, all countries will converge to the same productivity levels in the long run, assuming they have access to the same technology and exhibit similar savings rates and population growth. This model emphasizes the role of technology, savings, and investment in driving economic growth and suggests that differences in these factors can lead to differences in productivity levels across countries. However, over time, as technologies diffuse and countries adopt similar economic policies, their productivity levels are expected to converge.

According to the Neoclassical Growth Model of Robert Solow, All