Question

In the Solow growth model, Solow residuals are computed as the difference between the

rate of growth of output and the rate of growth of savings; while in the in the human capital
accumulation growth model; a reduction in the size of the population increases output per
worker and consumption per worker, and everyone is better off in the long run. True or false?

Answer 1

[AI-generated answer — Bot GPT 3.5]

False. In the human capital accumulation growth model, an increase in human capital through education and training leads to an increase in output per worker and consumption per worker, which ultimately benefits the economy and society in the long run. A reduction in the size of the population would not necessarily lead to this outcome.