The Romer model relies on increasing returns to ideas and labor.

Name: The Romer model relies on increasing returns to ideas and labor.
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The Romer model is based on the assumption of increasing returns to ideas, which means that the more ideas are used to produce goods and services, the more productive the economy becomes. Labor is also a key factor in the model, as it is necessary to implement ideas and create new knowledge.

The Romer Model Relies on Increasing Returns to Ideas and Labor