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The Key Difference Between the Neoclassical Growth Theory and the Classical

Question 95

Multiple Choice

The key difference between the neoclassical growth theory and the classical growth theory is that


A) growth in the neoclassical growth theory ends with a population explosion.
B) capital is not subject to diminishing returns under classical growth theory.
C) increases in population drive workers' incomes back down to the subsistence level in classical growth theory.
D) in classical growth theory, the pace of technological change influences the economic growth rate but economic growth does not influence the pace of technological change.
E) capital is subject to diminishing returns under classical growth theory.

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