An Assumption of the New Growth Theory Is That

question 1

Multiple Choice

An assumption of the new growth theory is that

• A)people earn a subsistence real wage in the long run.
• B)all technological advances are the result of chance.
• C)the marginal product of all types of capital increases as more capital is accumulated.
• D)the growth rate of labour productivity depends on people's ability to innovate.
• E)technological advances encourage international trade.

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