The key difference between the neoclassical growth theory and the classical growth theory is that
A) capital is not subject to diminishing returns under classical growth theory.
B) capital is subject to diminishing returns under classical growth theory.
C) increases in population drive workers' incomes back down to the subsistence level in classical growth theory.
D) growth in the neoclassical growth theory ends with a population explosion.
E) in classical growth theory, the pace of technological change influences the economic growth rate but economic growth does not influence the pace of technological change.
Correct Answer:
Verified
Q73: Which theory of economic growth argues that,
Q78: Factors that influence labour productivity include
A)the inflation
Q79: Labour productivity rises when
A)technological progress is stagnant.
B)firms
Q81: Which of the following does not contribute
Q82: _ fits the facts of today's world
Q85: All of the following statements are included
Q86: According to _ growth theory, growth of
Q87: An assumption of the neoclassical growth theory
Q88: Which theory of economic growth concludes that
Q89: Which of the following ideas apply to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents