Endogenous growth theory rejects the assumption of exogenous:
A) production functions.
B) rates of depreciation.
C) population growth rates.
D) technological change.

Question

Quizplus · Accepted Answer

Endogenous growth theory asserts that technological progress is an internal result of the economy, not an external influence. It implies that technological progress is a result of R&D, knowledge spillovers, and human capital accumulation, instead of being determined outside of the economic system. Therefore, it rejects the assumption of exogenous technological change.

Endogenous Growth Theory Rejects the Assumption of Exogenous