In Classical Growth Theory, If Real GDP Per Person Is

question 33

Multiple Choice

In classical growth theory, if real GDP per person is above the subsistence level,

• A)technological growth occurs and keeps real GDP per person above its subsistence level.
• B)population grows and lowers real GDP per person to its subsistence level.
• C)the pursuit of profit will cause economic growth to accelerate.
• D)the economy will keep growing without limit.
• E)None of the above is correct because the classical growth theory asserts that real GDP per person can never exceed the subsistence level.

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Definitions:

Selective Recruitment

The process of targeting specific individuals or groups for recruitment based on predetermined criteria.

Statistical Discrimination

The practice of making decisions about groups of people based on statistical generalizations, rather than individual merit, often leading to unfair outcomes.

Neighborhood Location

The specific area or place within a larger urban or rural setting where a given community resides.

Formal Economy

The sector of the economy that operates within official regulations and is taxed and monitored by a government.