Respuesta :
The first increase in output and investment in the Solow model with technological advancement is caused by productivity change.
Why does this occur?
Because of the rise in productivity, employees now create more at every level of capital per worker. This also implies that more is invested at a given pace of saving. As a result, the first increase in output and investment is brought on by the productivity change.
How has technology advanced according to the Solow model?
In essence, the Solow-Swan model asserts that, regardless of where an economy starts, it will eventually reach a state of balanced growth. In this case, the rate of technical development alone determines how much output per worker will increase.
How do population growth and technology affect the Solow model?
According to the Solow model, a rise in the population growth rate will hasten the growth of total output but have no long-term consequences on the growth of output per person. The amount of output per person decreases as the population growth rate remains constant.
Learn more about the Solow model: https://brainly.com/question/16243862
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