One of the long-term potential problems in getting an economy to increase its living standards in the Solow growth model is that:

Question

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In the Solow growth model, increasing living standards involves sacrificing consumption in the present in order to invest in capital that will increase productivity and output in the future. However, there is a potential problem that current generations may not want to make this sacrifice for the benefit of future generations, as they may prioritize their own immediate consumption. This can lead to a lack of investment, which hinders economic growth and reduces the potential for increased living standards in the future.

One of the Long-Term Potential Problems in Getting an Economy