305 W3 - Economic Growth: Solow Growth Model Summary of...

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Economic Growth: Solow Growth Model Summary of Article: This recent article from The Economist discusses the recent surge in human population and just what are just few of the possible effects if this trend is left unchecked. When a society takes measures to stabilize population growth the effects can be an economic jump that can last a generation. When the ratio of working age adults to non- working age adults is that extreme the nation is much more efficient. However, this economic boom is only short lived due to the smaller numbers of workers entering the labor force in the following generation. The article goes on to describe some of the obstacles to controlling population growth in underdeveloped countries of the world like Afghanistan and Somalia. Application: The Solow growth model shows how savings, population growth, and technological progress affect the level of an economies output and it’s growth over time. In my graph, the maximum output of a steady state economy is where Investment and
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This note was uploaded on 01/29/2012 for the course ECONOMICS 300 taught by Professor Instructor during the Fall '11 term at Boise State.

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305 W3 - Economic Growth: Solow Growth Model Summary of...

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