Economic Growth and Investment Decisions
Free CFA Level II lesson in Economics. 14 min read, ~2,038 words.
In the Solow model, a higher savings rate raises the LEVEL of steady-state output per worker but does not change the long-run growth rate; only technological progress does that. Growth accounting: TFP = GDP growth - (capital share x capital growth) - (labor share x labor growth). TFP is the...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- economic growth
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