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Which of the following is NOT an endogenous variable in the Romer model?Group of answer choicesThe number of workers engaged in researchThe fraction of the population engaged in researchThe stock of knowledgeOutput

Question

Which of the following is NOT an endogenous variable in the Romer model?Group of answer choicesThe number of workers engaged in researchThe fraction of the population engaged in researchThe stock of knowledgeOutput

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Solution

In the Romer model, the endogenous variables are those that are determined within the model itself. These include the number of workers engaged in research, the fraction of the population engaged in research, and the stock of knowledge. These variables are influenced by the conditions and assumptions within the model.

Output, however, is not an endogenous variable in the Romer model. It is determined by factors outside the model, such as technology level, capital, and labor, which are exogenous. Therefore, the answer to the question "Which of the following is NOT an endogenous variable in the Romer model?" is "Output".

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