Which of the following statements is likely to be made by someone who believes in the new growth theory?
A) Choices made by human capital are likely to be inefficient.
B) Competition will encourage discoveries of new ideas leading to greater economic growth.
C) Economic growth will eventually slow.
D) Although technological changes increase real GDP, these changes are random and unexplainable.
E) Population growth will limit long-run gains in real GDP per person.
Correct Answer:
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