Non-Rivalry of Ideas - Romer Growth Model



True or False?
Assumptions of Romer growth model, Pg 138+ (of Jones Macro Econ Crisis Update Ed), particularly the discussion on pages 142-143.




~Note: I doubt that you’ll get word-for-word this question on your exam, thus be prepared to discuss the non-rivalry of ideas, and the CRS of a typical production function, and how they may combine to produce long run growth (which is loosely like increasing returns to scale).

False - The gist is that the non-rivalry of ideas means that there can be increasing returns to ideas and objects (objects being the capital and labor in the production function) together – but I’d like you to read the book for the full answer.






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