Which of the following ideas are included in classical growth theory?
I. Subsistence real GDP per person
II. Growth in real GDP per person is temporary.
III. Technological change induces investment.

Question

Quizplus · Accepted Answer

Classical growth theory, primarily associated with economists like Thomas Malthus, posits that any increase in real GDP per person above a subsistence level is temporary because it would lead to an increase in population, which would subsequently dilute resources back to subsistence levels. It does not inherently focus on technological change inducing investment as a principle mechanism for growth, which is more aligned with other growth theories like endogenous growth theory.

Which of the Following Ideas Are Included in Classical Growth