New Growth Theorists Conclude That

question 53

Multiple Choice

New growth theorists conclude that

• A) invention is more important than innovation in spurring economic growth.
• B) the amount of technological innovation in an economy is independent of the rewards offered for innovation.
• C) rates of global economic growth are limited by the amount of raw materials available.
• D) economic growth can continue as long as we keep coming up with new ideas.

---

Definitions:

Government Deficit

The financial situation that occurs when a government's expenditures exceed its revenues within a specific time period, often leading to borrowing.

Jobless Recovery

A situation where the economy begins to recover from a recession, but the unemployment rate remains high or continues to increase.

Recognition Lag

Recognition Lag is the time delay between when an economic problem becomes apparent and when it is recognized by policymakers.

Stimulus Package

A collection of fiscal and monetary policies implemented by a government to stimulate a struggling economy.