An increase in the productivity of research. Suppose there is a one- time increase in the productivity of research, represented by an increase in in Figure 5.1. What happens to the growth rate and the level of technology over time?

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FIGURE 5.1 TECHNOLOGICAL PROGRESS: AN INCREASE IN THE
R&D SHARE
Å/A
9A=n
9A/0
X
SALO/AO
A/A = OLA/A
LA/A
Transcribed Image Text:FIGURE 5.1 TECHNOLOGICAL PROGRESS: AN INCREASE IN THE R&D SHARE Å/A 9A=n 9A/0 X SALO/AO A/A = OLA/A LA/A
1. An increase in the productivity of research. Suppose there is a one-
time increase in the productivity of research, represented by an
increase in in Figure 5.1. What happens to the growth rate and the
level of technology over time?
Transcribed Image Text:1. An increase in the productivity of research. Suppose there is a one- time increase in the productivity of research, represented by an increase in in Figure 5.1. What happens to the growth rate and the level of technology over time?
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