Why does growth occur in two-sector growth models?
What will be an ideal response?
In two-sector growth models, the first sector consists of manufacturing firms that use technology to produce consumption and investment goods for households and other firms. The second sector consists of firms that produce ideas and new technology, E, that are useful in producing manufacturing goods. Endogenous growth arises from the research sector, where new ideas and technology are produced.
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The group responsible for deciding on monetary policy is the
A) Federal Advisory Council. B) Board of Governors only. C) Federal Open Market Committee. D) group of 12 Federal Reserve Bank presidents only.
If the painting firms in a city sign a contract outlining a pricing plan, they are involved in
A) price regulation. B) collusion. C) price competition. D) a legal form of business contract in the United States.
The easiest economic sector to be ‘globalized' is
a. merchandise trade b. capital flows c. migration of labor d. technology transfer e. none of the above
On the graphs above, show how the central bank implements a decrease in the inflation target. In words, explain why the change in the real interest rate is temporary
What will be an ideal response?