Classical Growth Theory Argues That When Real GDP Per Person

question 9

Multiple Choice

Classical growth theory argues that when real GDP per person rises above the subsistence level,

• A) people donʹt want to work as much, decreasing labor supply.
• B) the economy enjoys a period of permanent growth.
• C) technological change slows down, stagnating the economy.
• D) population growth increases, driving real GDP per person back to subsistence level.

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