1st slides Savings rate is the percentage of income that individuals or households

save rather than spend on consumption. It represents the portion of

Solow growth model focuses mainly on the exogenous factors or the
income that is not immediately used for consumption goods and services
external factors that contributed to the economic growth. It analyzes
but is instead set aside for future use or investment. A higher savings rate
how those factors create changes to economic progress.
indicates that a larger portion of income is being saved, while a lower
Growth model in economics is a theoretical framework that describes savings rate suggests that more income is being spent on consumption
how an economy's output grows over time. These models typically
Technological progress refers to advances in scientific knowledge,
analyze the factors that influence economic growth, such as changes in
innovation, and technological development that lead to improvements in
technology, capital accumulation, population growth, and institutional
the production process and the creation of new goods and services. It
factors. Growth models help economists understand the dynamics of
includes the invention and adoption of new technologies, processes, and
economic growth, make predictions about future growth trends, and
organizational methods that increase productivity, reduce costs, and
assess the impact of policy changes on long-term economic
enhance economic efficiency. Technological progress is a key driver of
performance. The Solow Growth Model, for example, is a well-known
long-run economic growth, as it enables societies to produce more output
growth model that explains economic growth in terms of capital
with the same or fewer inputs
accumulation, population growth, and technological progress.
3rd slides
In simpler terms, "exogenous" means something that comes from
outside or is external to a system or model. It refers to factors or In this scenario, neutral shifts and constant returns to scale are being
variables that are not influenced by the system itself but rather affect it discussed in the context of a production function, which relates the inputs
from the outside. These external factors are typically assumed to be of production (usually capital, K, and labor, L) to the output (quantity
given or fixed when analyzing the system. produced, q).

2nd slides
Population growth
refers to the increase in the number of individuals living in a particular area
over a specific period of time. It is typically measured as the percentage
change in population size over time. Population growth can have
significant effects on economic growth, as it affects the size of the labor
force, consumer demand, and the potential for innovation and
entrepreneurship.
The graph mentioned represents the relationship between output (q) and
capital (k). A neutral shift of the production function means that the entire
function moves upward by the same factor without changing its shape.
This could indicate technological improvements or other neutral factors
that increase productivity across the board
To estimate this shift, you can't simply fit a curve through raw observed
points like P₁ and P₂ because they might be influenced by various factors
including changes in technology. Instead, you need to estimate the shift
factor for each point in time, which allows you to correct the observed
points for technical change. Once corrected, you can derive a production
function that accurately represents the underlying relationships between
inputs and output, while accounting for neutral shifts over time