The Solow growth model is
A) a dynamic model of the economy; it describes how the economy reaches an equilibrium at a point in time.
B) a statice model of the economy; it describes how the economy reaches an equilibrium at a point in time.
C) a dynamic model of the economy; it describes how the economy moves from one equilibrium point to another equilibrium point.
D) a dynamic model of the economy; it describes how the economy changes and grows over time.

Question

Quizplus · Accepted Answer

The Solow growth model is dynamic because it explains how an economy evolves and grows over time, focusing on long-term economic growth driven by capital accumulation, labor or population growth, and increases in productivity.

The Solow Growth Model Is