The new growth theory states that economic growth arises from people's choices, such as investment in research and development, education, and innovation. Population growth is not the primary source of economic growth according to this theory. The new growth theory emerged in the 1980s and 1990s, making C and D incorrect.

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New Growth Theory

Question 334

Multiple Choice

New growth theory

A) asserts that population growth is the source of economic growth.
B) states that economic growth arises from people's choices.
C) dates from the 18th century.
D) concludes that economic growth is temporary.

Correct Answer: