Intermediate Macroeconomic Theory
The ak model is a type of endogenous growth theory that emphasizes the role of capital accumulation in driving economic growth without diminishing returns. In this model, output is a function of capital stock, where the production function takes a linear form. This highlights how investment in capital leads to sustained increases in productivity and growth, connecting directly to the ideas of both long-term growth and the implications of technological progress.
congrats on reading the definition of ak model. now let's actually learn it.