According to new growth theory, as technology becomes more important to growth, so does
A) human capital.
B) military spending.
C) increasing taxes.
D) increasing trade barriers.

Question

Quizplus · Accepted Answer

New growth theory emphasizes the role of technology in driving economic growth, and also highlights the importance of human capital (i.e. knowledge, skills, and abilities of individuals) in contributing to technological progress and innovation. Therefore, as technology becomes more important to growth, investment in human capital becomes increasingly crucial.

According to New Growth Theory, as Technology Becomes More Important