JoeAnthony4690 JoeAnthony4690
  • 07-08-2020
  • Business
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In the Solow model with constant technological knowledge (A), if the economy is initially below its steady-state capital stock:

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topeadeniran2 topeadeniran2
  • 15-08-2020

Answer: catching up growth will occur

Explanation:

In the Solow model with constant technological knowledge (A), if the economy is initially below its steady-state capital stock,. catching up growth will occur.

This is because, we are informed in the question that the Solow model has a constant technological knowledge. This implies that no innovation took place for that period, hence, the catching up growth will occur.

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