Which of the Following Is Consistent with Classical Growth Theory

question 293

Multiple Choice

Which of the following is consistent with classical growth theory?

• A) As real GDP increases, there will be a decrease in the rate of population growth.
• B) Real GDP per person will increase because technological change induces investment.
• C) Competition destroys innovation and decreases profit.
• D) Real GDP per person will never permanently increase.

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Definitions:

Cognitive Structure

A mental framework used to organize and interpret information, influencing how we perceive and interact with the world.

Problem Solving

The cognitive process of finding solutions to difficult or complex issues, often involving the application of logical reasoning and creativity.

Heuristic

A problem-solving strategy or mental shortcut that allows people to solve problems and make judgments quickly and efficiently.

Language-like Skills

The abilities related to the use and understanding of complex systems of communication that resemble human language, including syntax, grammar, and the conveyance of abstract concepts.