Which of the following is true about 'new growth theory'?
A)It states that the rate of technological change is determined outside the working of the market system.
B)It does not adequately explain the factors that determine productivity.
C)It states that the rate of technological change is unaffected by economic incentives.
D)It states that the rate of technological change is caused by economic incentives.

Question

Quizplus · Accepted Answer

New growth theory states that economic incentives can lead to increased research and development, and therefore an increased rate of technological change.

Which of the Following Is True About 'New Growth Theory