Which of the following is consistent with classical growth theory?
A) Real GDP per person will never permanently increase.
B) As real GDP increases, there will be a decrease in the rate of population growth.
C) Competition destroys innovation and decreases profit.
D) Real GDP per person will increase because technological change induces investment.
Correct Answer:
Verified
Q47: Moving along the aggregate production function shows
Q48: An assumption of classical growth theory is
Q49: An important foundation of the new growth
Q50: Full employment corresponds to
A)equilibrium in the labour
Q51: Classical growth theory states that
A)growth in real
Q53: According to the law of diminishing returns,
Q54: Technological change
A)has no effect on employment.
B)lowers the
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