Unformatted text preview: to double. 3. As the Solow model predicts, devoting a larger share of income to investment in the US would help restore the rapid productivity growth characteristic of the 1950s and 1960s. 4. Assume that the production in the economy is carried out with a production function given by Y = K β L α . Then, the economy will experience increasing returns if and only if α + β > 1 . 5. During the demographic transition, population growth increased because fertility declined faster than mortality. 1...
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- Fall '08
- Demography, Javier Birchenall, income per-capita reduces, current income diﬀerences