A Key Idea of the New Growth Theory Is That

question 105

Multiple Choice

A key idea of the new growth theory is that

• A) technology is not an important determinant of economic growth.
• B) economic growth is not as important as leisure time growth.
• C) the greater the rewards for technological advances, the greater the number of technological advances.
• D) the rewards associated with technological advances have little to do with the actual rate of invention or innovation.

---

Definitions:

Total Output

The total quantity of goods or services produced by a firm or country within a specific period.

Economic Expansion

A phase in the business cycle where the economy grows and increases its output, characterized by a rise in employment, consumer spending, and production.

Mild Recession

A period of slight economic decline wherein the economy's growth slows down, but the downturn is not severe enough to be classified as a full recession.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product much faster than with traditional manufacturing methods.