Endogenous growth theory attempts to
A)replace the Solow model with a model in which money growth plays a key role.
B)explain how societies can more easily reach the "Golden Rule."
C)show how population growth reduces capital and output.
D)explain why productivity changes.

Question

Quizplus · Accepted Answer

Endogenous growth theory focuses on explaining why productivity changes, and how technological progress, human capital, and research and development can lead to sustained economic growth. It does not necessarily aim to replace the Solow model or address population growth.

Endogenous Growth Theory Attempts to