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.

Question

Quizplus · Accepted Answer

According to new growth theory, technological change is influenced by economic incentives, meaning that economic growth can be accelerated through deliberate policies that promote research and development, such as tax credits and subsidies for innovation.

According to New Growth Theory