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Classical Growth Theory Argues That When Real GDP Per Person

Question 204

Multiple Choice

Classical growth theory argues that when real GDP per person rises above the subsistence level,


A) people donʹt want to work as much, decreasing labor supply.
B) the economy enjoys a period of permanent growth.
C) technological change slows down, stagnating the economy.
D) population growth increases, driving real GDP per person back to subsistence level.

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