Classical Growth Theory Proposes That Real GDP Growth Is ________

question 320

Multiple Choice

Classical growth theory proposes that real GDP growth is ________ and that real GDP per person will ________ the subsistence level.

• A) permanent; temporarily be above
• B) permanent; always be above
• C) temporary; temporarily be above
• D) temporary; be above and below

---

Definitions:

Taiwan

An East Asian island country located off the southeastern coast of China, known for its dynamic economy and vibrant democracy.

Productivity Growth

An increase in the efficiency of production processes, leading to a higher output of goods and services for the same input of labor, capital, and resources.

Economic Growth

An increase in a country's output of goods and services over time, measured by the rise in its Gross Domestic Product (GDP).

Basic Skills

Fundamental abilities such as reading, writing, and arithmetic that form the building blocks for further learning and job competencies.