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Which of the Following Ideas Are Included in Classical Growth

question 263

Multiple Choice

Which of the following ideas are included in classical growth theory?
I. Subsistence real GDP per person
II. Growth in real GDP per person is temporary.
III. Technological change induces investment.


Definitions:

Pure Command Economy

An economic system where all production, investment, prices, and incomes are controlled by the government.

Privately Owned

Refers to properties, businesses, or assets that are owned by individuals or private companies and not by the state or public entities.

Price System

A mechanism through which prices adjust to balance supply and demand for goods and services in an economy.

Centralized Planning

A system of economy where all choices related to the creation and allocation of goods and services are made by a central governmental body.

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