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Solow Growth Model

The Solow growth model is a framework developed by economist Robert Solow to explain long-run economic growth. It is based on the idea that economic growth is driven by increases in an economy's capital stock (such as factories, machinery, and infrastructure) and labour force, as well as technological progress.

The model suggests that an economy's rate of economic growth will eventually slow down as it reaches its long-run equilibrium, because the rate at which it can increase its capital stock and labour force will eventually be limited.

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