The new growth theory emphasizes the critical role of ____ in modern economic growth.

Question

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The new growth theory focuses on the importance of knowledge and technological progress for economic growth. It argues that investment in research and development, education, and innovation can increase productivity and accelerate economic growth. While new machinery and natural resources can also contribute to economic growth, they are not as crucial as knowledge and technological progress in the long run. Government programs can have a role in fostering innovation and providing support for research and development, but they are not a sufficient condition for sustained economic growth.

The New Growth Theory Emphasizes the Critical Role of ____