Neoclassical growth theory predicts that growth in real GDP is determined by

Question

Quizplus · Accepted Answer

Neoclassical growth theory posits that economic growth is driven by technological progress and population growth. Technological change can improve productive efficiency and increase productivity, while population growth increases the labor supply, which can drive economic growth. Therefore, option A, population growth, and the pace of technological change is the correct answer. Option B, population growth only, is incorrect because technological change is also an important factor. Option C, choices and the pursuit of wealth, and option E, the government's actions, are not major factors in neoclassical growth theory. Option D, technological change only, is also incorrect as population growth is also a vital determinant of economic growth.

Neoclassical Growth Theory Predicts That Growth in Real GDP Is