Neoclassical growth theory attributes economic growth to

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Neoclassical growth theory attributes economic growth to technological change, which is also known as total factor productivity. It emphasizes the role of technological progress in stimulating economic growth, in contrast to the classical growth theory that focuses on the accumulation of capital and population growth. The law of diminishing returns and fiscal policy are not core components of neoclassical growth theory, while population growth may contribute to growth in some contexts but is not the main driver according to this theory.

Neoclassical Growth Theory Attributes Economic Growth to