Question
Macroeconomics Question on Behavioural and technological functions
The technical change in the endogenous growth model is endogenized by
A
providing incentives to firms to innovate.
B
making the saving function dependent on income.
C
introducing constraints in capital accumulation.
D
assuming a perfectly competitive market structure.
Answer
providing incentives to firms to innovate.
Explanation
Solution
The correct option is (A): providing incentives to firms to innovate.