A Central Proposition of the New Growth Theory Is That

question 249

Multiple Choice

A central proposition of the new growth theory is that

• A) government direction and oversight is necessary for consistent growth.
• B) growth is often just an illusion fostered by growth accounting.
• C) knowledge is not subject to diminishing returns.
• D) growth will cease but prosperity will persist.

---

Definitions:

Inductive Reactance

The opposition an inductor provides to alternating current, directly proportional to the frequency of the current.

Pure Inductive

Refers to a circuit element or circuit that purely has inductance without any resistance, ideally opposing changes in current by generating a magnetic field.

Current

The rate of flow of electrons.

Coil

A component that produces a magnetic field when electric current flows through it.