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Suppose in the Romer growth model of the growth of A is described by the followingequation:A(t+1)-A(t) =dL A . 1-Describe what will happen in the
Suppose in the Romer growth model of the growth of A is described by the followingequation:A(t+1)-A(t) =dLA.
1-Describe what will happen in the long run per-capita income growth rate and the absolute level of per-capita income ifd increases? Use diagrams if necessary.
2-Will the answer change when A(t+1)-A(t) =d ALA?Describe
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