Modern growth theory views technological innovation as ________,whereas Solow growth theory views technological change as ________.
A) exogenous; random
B) random; exogenous
C) endogenous; exogenous
D) exogenous; endogenous
E) exogenous; exogenous

Question

Quizplus · Accepted Answer

Modern growth theory considers technological innovation as endogenous, meaning it is influenced by economic factors and decisions within the model. Solow growth theory, on the other hand, treats technological change as exogenous, meaning it is determined outside the model and not influenced by economic factors within it.

Modern Growth Theory Views Technological Innovation as ________,Whereas Solow Growth