Summary: Last class we learned about the sources of and barriers to economic growth and development. Today we will learn about the economic theories that have been developed over time to explain growth and development.
Inquiry Question: Which economic theory best explains economic growth and development?
All of your responses for the Summative Discussion should be complete.
Lecture: Growth and Development Models
Watch: The two videos linked below.
Listen to this podcast. Focus on this question as you listen: "Solow contends that capital accumulation cannot explain a significant portion of the economic growth we see." If capital accumulation does not explain economic growth, what does according to Solow?
Robert Solow, Professor Emeritus at Massachusetts Institute of Technology and Nobel Laureate, talks with EconTalk host Russ Roberts about his hugely influential theory of growth and inspiration to create a model that better reflected the stable long-term growth of an economy. Solow contends that capital accumulation cannot explain a significant portion of the economic growth we see. He makes a critical distinction between innovation and technology, and then discusses his views on Milton Friedman and John M. Keynes.