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In Classical Growth Theory, If the Income Level Is Above

Question 123

Multiple Choice

In classical growth theory, if the income level is above the subsistence income,


A) the economy will keep growing without limit.
B) population grows and lowers real income to its subsistence level.
C) technological growth occurs and keeps real income above its subsistence level.
D) the pursuit of profit will cause economic growth to accelerate.
E) None of the above is correct because the classical growth theory asserts that income can never exceed the subsistence level.

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