Which of the following statements best describes the difference-08836
Which of the following statements best describes the difference between endogenous growth theory and the Solow growth theory?
This multiple choice question (MCQ) is related to the book/course
vu eco401 Economics.
It can also be found in
vu eco401 Final Term - Quiz No.8.
Which of the following statements best describes the difference between endogenous growth theory and the Solow growth theory?
Endogenous growth theory is a monetary theory whereas the Solow theory is a real theory.
Endogenous growth theory assumes diminishing returns to capital and the Solow theory assumes constant returns.
In endogenous growth theory, economies with the same technology and saving rate need not converge to the same steady state as in the Solow model.
All of the given options are correct.
