Classical Growth Theory States That

question 8

Multiple Choice

Classical growth theory states that

• A) growth is maximized when everyone is fully employed.
• B) growth is followed by increases in the population, eventually leaving real GDP per person unchanged.
• C) growth in real GDP per person is difficult in the beginning but easier in the later stages.
• D) advances in technology will always insure a permanent increase in real GDP per person.

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Definitions:

Expression

A combination of symbols and numbers that represents a particular quantity or operation, but does not include an equality sign.

Exponential Equation

An equation where the variable appears in the exponent, expressing the relationship between two quantities where one varies as a constant power of another.

Decimal Places

The count of numbers present after the decimal point in a decimal numeral.

Annual Interest Rate

The percentage of principal charged by lenders or paid to investors per annum.