In the Solow model,which of the following is an exogenous variable?
A)productivity
B)the capital-labor ratio
C)consumption per worker
D)investment per worker

Question

Quizplus · Accepted Answer

In the Solow model, productivity is treated as an exogenous variable, which means it is not determined by any factors within the model but is instead assumed to be determined by factors outside the model, such as technological progress or government policy. The other variables listed (capital-labor ratio, consumption per worker, investment per worker) are endogenous variables, which means they are determined within the model based on the interactions between other variables in the model.

In the Solow Model,which of the Following Is an Exogenous