The Solow model is based on:
A) a production function.
B) supply and demand curves.
C) the GDP accounts.
D) consumer preferences.

Question

Quizplus · Accepted Answer

The Solow model is based on a production function, which relates the inputs of capital and labor to the output of goods and services. The model looks at how changes in capital and labor affect economic growth over time. Supply and demand curves, GDP accounts, and consumer preferences are not the key components of the Solow model.

The Solow Model Is Based On