If the U.S.economy grows as proposed by the neoclassical growth model, we would see that

Question

Quizplus · Accepted Answer

According to the neoclassical growth model, increases in technology lead to increases in productivity and real GDP per person. Therefore, choice A is the best answer. Choices B and C are incorrect because the neoclassical growth model predicts that real GDP per person will continue to grow, albeit at a slower rate, even as population growth slows and capital per worker decreases due to technological advances. Choice D is incorrect because the neoclassical growth model does not rely on random events to explain economic growth. Choice E is also incorrect because the neoclassical growth model predicts that increases in real GDP are driven by technological progress, not by upward shifts in the production function.

If the USEconomy Grows as Proposed by the Neoclassical Growth Model, We