Neoclassical growth theory proposes that

A) technological progress increases the population growth rate and drives down real wages.
B) real GDP per person grows because technological change increases profit opportunities.
C) real GDP growth is caused by growth in the population.
D) discoveries result from choices that increase profits.

B

Economics

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When there are external costs of production, such as when electric utilities burn coal, a competitive market will produce an inefficient level of output

Indicate whether the statement is true or false

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The optimal tax is difficult to determine because although revenues rise and fall as the size of the tax increases, deadweight loss continues to increase

a. True b. False Indicate whether the statement is true or false

Economics