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.
Correct Answer:
Verified
Q118: Real GDP equals aggregate hours
A) divided by
Q121: Neoclassical growth theory predicts that real GDP
Q122: Classical growth theory predicts that increases in
Q124: According to classical growth theory, as capital
Q125: In which theory of economic growth does
Q126: Real GDP per person did not remain
Q127: Classical growth theory predicts
A) a slowdown in
Q128: Which growth theory predicts that even when
Q219: _ increases with education, training, and job
Q227: Labor productivity equals
A)real GDP divided by the
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