Endogenous growth models:
A) explicitly specify how technology is accumulated.
B) explicitly specify how capital is accumulated.
C) ignore technology and capital accumulation, but focus on labor instead.
D) take technological progress as an exogenous variable that influences all the remaining endogenous variables.

Question

Quizplus · Accepted Answer

Endogenous growth models explicitly specify how technology is accumulated as an endogenous variable, which is different from exogenous growth models where technological progress is taken as an exogenous variable. These models emphasize that the accumulation of knowledge and technology can generate sustained economic growth through positive spillover effects on the productivity of workers and firms.

Endogenous Growth Models