Classical Growth Theory Predicts That Increases in Real GDP Per

question 88

Multiple Choice

Classical growth theory predicts that increases in real GDP per person will

• A) not last because higher income leads to a population explosion.
• B) last because higher growth leads to new technology.
• C) last because people make choices in the pursuit of higher profits.
• D) not last because higher income encourages smaller families and a lower population growth rate.
• E) last only if the government directs firms to make more investments in capital and new technology.

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Definitions:

Cultural Achievements

The notable contributions and innovations made by a society or community in areas such as the arts, sciences, literature, and technology, reflecting its cultural heritage and identity.

War of 1812

A military conflict fought between the United States and Britain from 1812 to 1815, largely over issues of trade restrictions and maritime rights.

British Army

The principal land warfare force of the United Kingdom, with a history of involvement in numerous international conflicts and colonial administration.

Chesapeake

Relates to the Chesapeake Bay, an estuary in the U.S. states of Maryland and Virginia, important for its role in commerce, navigation, and history, including the slave trade in the colonial period.