Which of the following are the assumptions made in Solow model of long run growth?
The basic Solow model assumes that one composite commodity is produced, which can be consumed or invested. It also uses flexible adjustment and full employment rather than…
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Which of the following are the assumptions made in Solow model of long run growth?
Answer and explanation
Correct answer B
The basic Solow model assumes that one composite commodity is produced, which can be consumed or invested. It also uses flexible adjustment and full employment rather than rigid prices and only temporary employment.
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Karnataka SET (KSET)