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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:

Firms

Organizations that use various inputs to produce goods or services for sale to consumers, other businesses, or the government.

Workers

Individuals engaged in a particular task or activity for wages or salary.

Price Floor

A government- or group-imposed price control or limit on how low a price can be charged for a product.

Equilibrium Price

The cost factor at which the supply side and demand side of goods reach an equilibrium in the market.

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