In explaining economic growth, new growth theory stresses the role played by

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New growth theory emphasizes the role of human choices, such as entrepreneurship, innovation, and education, as drivers of economic growth. Population moderation, women in the workforce, and elderly workers' participation rate may have an impact on economic growth, but they are not emphasized in new growth theory as much as human choices. The government can play a role in promoting economic growth through its policies, but its direction of the nation's investments may not be as efficient as the market-driven choices of individuals and firms.

In Explaining Economic Growth, New Growth Theory Stresses the Role