The production of new ideas in the Romer model is:

Question

Quizplus · Accepted Answer

In the Romer model, the production of new ideas depends on the efficiency of creating knowledge and the fraction of labor in research and development. As the efficiency of creating knowledge increases, it becomes easier and faster to generate new ideas. Similarly, as the fraction of labor in research and development increases, more resources are devoted to generating new ideas, leading to more innovation. Therefore, option A - increasing in the efficiency of creating knowledge and the fraction of labor in research and development - is the best choice.

The Production of New Ideas in the Romer Model Is