Which of the following ideas apply to the neoclassical growth theory?
I. The rate of technological change influences the rate of economic growth.
II. Technological change promotes saving and investment.
III. Convergence of economic growth rates across countries.

Question

Quizplus · Accepted Answer

Neoclassical growth theory, developed by Solow and Swan, posits that technological change is an exogenous factor influencing economic growth (I), indirectly promotes saving and investment by increasing returns (II), and suggests that countries with similar savings rates, population growth, and access to technology will converge in terms of their per capita income levels over time (III).

Which of the Following Ideas Apply to the Neoclassical Growth