The endogenous growth theory (e.g., Romer Model) differs from Solow by asserting that long-run growth is driven by:

AExogenous population explosions

BForeign capital inflows

CDecreasing returns to scale

DEndogenous factors like investment in human capital, R&D, and innovation

Explanation

Endogenous growth models show that policy, R&D, and human capital accumulation generate sustained long-run growth without diminishing returns.

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