The neoclassical growth theory predicts that i) the subsistence real wage rate will increase over time.
Ii) real GDP per person will grow at a rate equal to the population growth rate.
Iii) real GDP per person will increase as long as technology also increases.

Question

Quizplus · Accepted Answer

Neoclassical growth theory suggests that real GDP per person will increase as long as technology improves, as technological progress is a key driver of long-term economic growth. It does not predict that the subsistence real wage rate will increase or that GDP per person will grow at the population growth rate.

The Neoclassical Growth Theory Predicts That I) the Subsistence Real