The Solow growth model was the first economic model to show that long-term increases in living standards depended crucially on:

Question

Quizplus · Accepted Answer

The Solow growth model emphasizes the role of technological progress as the main driver of long-term economic growth and increasing living standards. While increases in capital, labour, and saving rates can contribute to growth in the short term, technological progress is necessary for sustained growth in the long run.

The Solow Growth Model Was the First Economic Model to Show