Classical Growth Theory Asserts That

question 81

Multiple Choice

Classical growth theory asserts that

• A) an increase in the labor supply raises real wage rates.
• B) population growth is determined by the level of income per person.
• C) real wage rates fall over time and, as they fall, they increase the population growth rate.
• D) the economy can grow indefinitely.

---

Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of all the numbers by the count of numbers.

Poisson Probability Tables

Tables that provide the probabilities of different numbers of events happening in a fixed interval of time or space, assuming these events occur with a known constant rate and independently of the time since the last event.

Occurrences

Incidents or instances of something happening.

Poisson Random Variable

A type of discrete random variable that expresses the probability of a given number of events occurring in a fixed interval of time or space if these events happen with a known constant mean rate and independently of the time since the last event.