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Quiz 2 Q

The document contains two questions for a macroeconomics quiz, asking how endogenous growth theory explains persistent growth without assuming exogenous technological progress and how it differs from the Solow model, and asking about factors that could explain the growth rates and differences between Pakistan and Germany and mechanisms for convergence or leapfrogging of incomes.

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0% found this document useful (0 votes)
17 views

Quiz 2 Q

The document contains two questions for a macroeconomics quiz, asking how endogenous growth theory explains persistent growth without assuming exogenous technological progress and how it differs from the Solow model, and asking about factors that could explain the growth rates and differences between Pakistan and Germany and mechanisms for convergence or leapfrogging of incomes.

Uploaded by

Mahnoor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Macroeconomics II

Dr. Waqar Wadho


Quiz # 2
2nd March 2021

Q1: How does endogenous growth theory explain persistent growth without the assumption of
exogenous technological progress? How does this differ from the Solow model? [15 marks]
Q2: Suppose persistent growth is explained by the both accumulation of capitals (physical,
human and public infrastructure) and technological progress. In a world with two countries
Pakistan and Germany, what would explain their growth rates today and its difference? Explain
the mechanisms that could lead to convergence of Pakistan to German per capita income, and
the mechanism that could result in leapfrogging. [35 marks]

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