economic growth determined

EG Model explains that factors determining are

endogenously
not given
.
anogenously
bynot termind
and
they
am

p
Au Sau Mo, omgrachind
state
will
mentually stop after attaining steedy
and
Ak Model AK where A is a contact measuring of output
that is Y
product pe
=
-- ric
model assume
diminizing
-

growth In not represent

wate that product
does
Endogenous
(A=7)
met
of Capital
we

tel Physical diminishingRetra

.

Avrit
produced by salowe
and Ergo-growth
models .

bu
and time is an
imp-diference rapital
acumber
process of
economy growth
is
depreset
a
test investment -

model angue
depreciation
Both > DK =

However
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-

,
= 34 - Sk
which is differenc blu Sk
= s .
(Ak) -

Ak =
k(s . A -

S)
-S
===
persistent growth (new who feely
s
$ AXS =>

of oupet rate : A-S if .

that growth
.

-
this sell showe and
Saving Rate depreciat Rile ,
will be
depends on
As As there
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growth
A
the value of
sugroudly
.

mcoramic
about
the assept of changed the predict
of output
wo th las
continuous growth A simple change
in
producti
etermind tech. progress - is .

the
do
expitel eventually force
diminishing
and Retire
leads to growth
but
only temporarily and sentment lead do
ran

In Solow Model ,
I saving
state In Contract In As model
:
Saving well human report
approach stredy proyisied expired
, o
as
.

to include the form of

the
acody
expired do
interpreted broadly required Human espite in

physica
is ,
bot to
continuos growth assure diminishing
return
menain constant
it is
do
returned Return So vapital may
as
though return i .,

increasing
-

los showe
knowledge and meand win
.

ramfecting
setor
in which
san plained by 2-sebor mode factor eled knowledge
produce
a
has
The persistent growth while research univ
acument
sector
produces goods and expirat
sath-
are
sector .

Raifathing is described by following productor th

used in both sector .
So ,
Economy
winder is
schon
Y F(K A-v) 2] >
- for marbeating
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= ,

Research minuity
>
-

for
=E (a)
-

= 1 Y -
Sk but diferies outpet produced by
Ax
factor
important
.
.

Reanch win is an thet

model knowledge produced by solo model it does not spect
Acti Guis
,
rabour but white
is determined
efficing
increasing of that tech progress
firm
bet it influences
rate
. Rather it orgue mode
at some
sognously given is endogenous growth
is increasing that it
officing to research vain and in may
sborr porce going
b praction of