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I have started out reading seminal paper of Solow - Solow Growth model. It starts out with discussing weaknesses in Harrod Domar Model, a simple model of economic growth which featured prior to solow's work. You can read about Harrod model here

https://www.google.co.in/amp/s/sanaasaluja.wordpress.com/2015/08/05/the-harrod-domar-model-of-economic-growth/amp/

While discussing about Harrod Domar Model, Solow said it consistently uses short run tools for long run analysis (see the picture). But I don't understand why he called 'the multiplier' as a short run tool and 'margin(al) [product]' as a long run tool?

picture

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  • $\begingroup$ the multiplier is the capital coefficient? $\endgroup$ – Guy Louzon Sep 23 '18 at 17:50

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