According to new growth theory,
A)technological change is influenced by economic incentives.
B)centrally-planned economies are the most efficient.
C)growth in real GDP per capita occurs only if there are increasing returns.
D)economic growth is determined by forces outside the control of the market system.
E)capital accumulation will accelerate GDP growth.

Question

Quizplus · Accepted Answer

New growth theory emphasizes the importance of economic incentives in promoting technological change and innovation, which ultimately leads to economic growth.

According to New Growth Theory