The Solow model predicts that the standard of living in poorer nations will converge on that of richer nations through rapid capital formation that raises output per person.The introduction of technological change to the model ________ change this prediction because technology ________ assumed to be freely available to all countries.
A)does,is
B)does,is not
C)does not,is not
D)does not,is

Question

Quizplus · Accepted Answer

The introduction of technological change does not change the prediction of convergence because technology is assumed to be freely available to all countries, allowing poorer nations to catch up.

The Solow Model Predicts That the Standard of Living in Poorer