Figure 6.2: Romer Model: Per Capita Output
-In the Romer model in Figure 6.2, at time t₀, a change in the shape of the production function can be explained by an increase in the:

Question

Figure 6.2: Romer Model: Per Capita Output -In the Romer model in Figure 6.2, at time t₀, a change in the shape of the production function can be explained by an increase in the:

Quizplus · Accepted Answer

An increase in the share of labor engaged in research would change the shape of the production function in the Romer model by increasing the rate at which new ideas are generated, thus enhancing productivity.