Utilizing the Solow growth framework:
a. Explain the sources of economic growth for China in the past and what the sources will be in the future using the following equation:
ΔY(t) / Y(t) = ΔA(t) / A(t) + αΔK(t) / K(t) + βΔL(t) / L(t)
b. Explain why we say that surely China's growth rate will slow in the future.
c. Explain why China's high savings rate is an unlikely source of sustainable growth.

Question

Quizplus · Accepted Answer

The Answer of Utilizing the Solow growth framework:
a. Explain the sources of economic growth for China in the past and what the sources will be in the future using the following equation:
ΔY(t) / Y(t) = ΔA(t) / A(t) + αΔK(t) / K(t) + βΔL(t) / L(t)
b. Explain why we say that surely China's growth rate will slow in the future.
c. Explain why China's high savings rate is an unlikely source of sustainable growth.

Utilizing the Solow Growth Framework