Neoclassical growth theory proposes that

Question

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Neoclassical growth theory proposes that technological change increases profit opportunities, which leads to increased real GDP per person. This is due to the assumption that technological progress allows for increases in productivity and efficiency, which ultimately leads to economic growth. Option A is incorrect because discoveries can also result from government funding and research, and not just profit-seeking behavior. Option C is incorrect because technological progress does not necessarily increase the population growth rate or drive down real wages. Option D is incorrect because population growth alone cannot lead to sustained economic growth.

Neoclassical Growth Theory Proposes That