Economics · Economic Growth Models
According to Kaldor's Growth Model, what is the relationship between technical progress and capital accumulation?
- 1Savings and investment have no influence on technological progress.
- 2Technical progress remains constant irrespective of economic growth.
- 3Technical progress is purely exogenous and independent of investment.
- 4It assumes that the rate of technical progress depends on the rate of capital accumulation.✓
Correct answer
It assumes that the rate of technical progress depends on the rate of capital accumulation.
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