The new growth theory was developed by ________ and proposes that ________
A) Thomas Malthus; increases in population drive wages to their subsistence level
B) Ben Bernanke; changes in the money supply drive economic growth
C) Paul Romer; the desire for profits drives increases in real GDP per person
D) Adam Smith; markets will determine the appropriate economic growth rate
E) Robert Solow; increases in technology growth are responsible for economic growth
C
You might also like to view...
Jonathan Gold Miners & Co operates in a perfectly competitive market. In recent years, it has benefitted from a record rise in gold prices as the price of its output is highly influenced by market speculation. It buys its inputs from perfectly competitive resource markets. If it wants to take advantage of the rise in gold prices, it should: a. increase its production and accept the market price
for its physical capital inputs. b. increase its price to a level where it is higher than its marginal revenue. c. reduce its production to encourage speculators to drive gold prices higher. d. negotiate to reduce the wage rate of its labor inputs to maximize profits.
The Consumer Price Index includes
A. the top selling 50 goods and services each month. B. all of the goods and services produced in the economy. C. only goods and services produced domestically. D. goods and services from 8 major categories.