One of the shortcomings of the Solow growth model is that in it the rate of technological change is
A)assumed to be zero.
B)assumed to be equal to the population growth rate.
C)left unexplained.
D)zero unless the saving rate exceeds the depreciation rate.

Question

Quizplus · Accepted Answer

The Solow growth model does not provide an explanation for the rate of technological change. It assumes that technological progress is exogenous and not explained by the model itself.

One of the Shortcomings of the Solow Growth Model Is