In the textbook model of endogenous growth,the production function is modeled as
A)Y = AK.
B)Y = C + I + G + NX.
C)Y = X.
D)Y = S - I.

Question

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In the textbook model of endogenous growth, the production function is modeled as Y = AK, where Y is the output, A is the level of technology, and K is the stock of physical capital. This model emphasizes the role of technological progress in enhancing economic growth, and suggests that investment in research and development can have long-term benefits for an economy. Choices B, C, and D are not relevant to the textbook model of endogenous growth.

In the Textbook Model of Endogenous Growth,the Production Function Is