# MGEC81H3 Lecture Notes - Lecture 2: Production Function, Human Capital, Conditional Convergence

## Document Summary

Mgec81 (g. frazer) some potential questions after lectures 2 and 3: explain the difference between consumption goods and capital goods, explain the harrod-domar model of economic growth. State (but do not derive) the equation and/or diagram that explains the nature of growth in this model. Why or why not: explain the harrod-domar model of economic growth with endogenous population growth. Describe the effect of a temporary increase in savings under this model: explain the solow model of economic growth, using a diagram and/or algebra as relevant. Describe the factors that affect short-run and long-run income, and short-run and long-run growth in this model: explain the solow model of economic growth with technical progress, using a diagram and/or algebra as relevant. Describe the factors that affect short-run and long-run income, and short-run and long-run growth in this model. Describe the key differences between this model and the model without technical progress.