________________predicts that real GDP per person can grow indefinitely.

Question

Quizplus · Accepted Answer

The New growth theory predicts that real GDP per person can grow indefinitely. This theory emphasizes the role of knowledge, technology, and innovation in driving economic growth, and argues that the accumulation of these factors is not subject to diminishing returns. This differs from the Classical and Neoclassical growth theories which suggest that real GDP per person will eventually reach a steady state level, with output per worker determined by the capital stock and technology level respectively. Profit growth theory appears to be a made up term and isn't a recognized theory.

________________Predicts That Real GDP Per Person Can Grow Indefinitely