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The Determination of the Rate of Technical Progressnant influence upon it. The rate of technical progress will also be a major factor in the determination of an economy’s capital-output ratio, its rate of profit and its distribution of incomes. How the rate of technical progress is determined will therefore be a matter of the utmost importance.

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The Influence of Technical Progress Functions on Steady Growth Relationshipsind will have a considerable influence on the steady growth relationships between the principal economic variables. This can be seen most simply if this technical progress function is substituted in the basic equations, . and ., which were found in Chapter 2. Substituting . for . in these:

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Profits and GrowthIn Chapter 2 it was pointed out that where an economy is on a steady growth path, there must be microeconomic equilibrium with producers and consumers satisfied that they are investing, innovating and consuming at the right rates, as well as macroeconomic equilibrium. The relevant microeconomic cond

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