Which of the following ideas are included in classical growth theory?
I. Subsistence real GDP per person
II. Growth in real GDP per person is temporary.
III. Technological change induces investment.

Question

Quizplus · Accepted Answer

Classical growth theory includes the idea that growth in real GDP per person is temporary (II) and that subsistence real GDP per person exists (I). However, it does not directly address the concept that technological change induces investment (III), as this is more closely associated with neoclassical growth theory.

Which of the Following Ideas Are Included in Classical Growth