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An Assumption of the New Growth Theory Is That

Question 94

Multiple Choice

An assumption of the new growth theory is that


A) the growth rate of labour productivity depends on people's ability to innovate.
B) the marginal product from all types of capital increases as more capital is accumulated.
C) all technological advances are the result of chance.
D) people earn a subsistence real wage in the long run.
E) technological advances encourage international trade.

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