Question

Labor is the only input, and the benefit of technology is reflected in labor productivity in which model?

a) Classical model
b) Keynesian model
c) Solow growth model
d) Heckscher-Ohlin model

Answer 1

The benefit of technology is reflected in labor productivity in the Solow growth model.

Step-by-step explanation:

The model in which the benefit of technology is reflected in labor productivity is the Solow growth model. According to neoclassical economists, the Solow growth model emphasizes the role of technology, along with investments in human and physical capital, in driving long-term productivity growth. In this model, labor is the only input, and the increase in labor productivity is a result of technological advancements.