Chapter 9: Economic Growth II Flashcards
1
Q
Efficiency of Labor
A
Variable E: Meant to reflect society’s knowledge about production methods
2
Q
Labor-augmenting Technological Progress
A
Technological progress that increases the effective labor. The function involves labor and capital, increase A with time. Y=f(A(t)L,K)
3
Q
Endogenous Growth Theory
A
Models that reject the Solow Model’s assumption that of exogenous technological change
4
Q
Creative Destruction
A
Joseph Schumpeter suggested that economic progress comes through a progress of creative destruction
