In the context of the Solow model,new ideas cause both cutting-edge growth and catching-up growth to occur over time.

Name: In the context of the Solow model,new ideas cause both cutting-edge growth and catching-up growth to occur over time.
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Question

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In the Solow model, new ideas are a key driver of economic growth, leading to both cutting-edge growth (as new technologies are developed) and catching-up growth (as countries adopt and implement existing technologies). As such, the statement is true.

In the Context of the Solow Model,new Ideas Cause Both