Use the table below to answer this question. The data show national savings rates as a percentage of GDP; the growth rate of real GDP per person; and birth rates in 2006. www.econstats.com; www.os- connect.com
If the data support the neoclassical growth theory, we would expect to see

Question

Use the table below to answer this question. The data show national savings rates as a percentage of GDP; the growth rate of real GDP per person; and birth rates in 2006.  www.econstats.com; www.os- connect.com
If the data support the neoclassical growth theory, we would expect to see

Quizplus · Accepted Answer

The neoclassical growth theory emphasizes the importance of capital accumulation for economic growth. A higher savings rate leads to more investment and capital accumulation, which in turn leads to higher economic growth. Japan has a higher savings rate compared to other countries in the table, which suggests that it may have higher capital accumulation and therefore a higher economic growth rate.

Use the Table Below to Answer This Question