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According to Classical Growth Theory, as Capital Per Hour and Technology

Question 225

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According to classical growth theory, as capital per hour and technology increase,


A) the population grows and eventually real GDP returns to the subsistence level.
B) the population grows but more slowly than real GDP so that people's incomes are permanently higher.
C) the pursuit of profit causes further increases in capital per hour and technology and economic growth continues indefinitely.
D) the growth rate of real GDP per person permanently increases.
E) people save more, which increases the capital per hour even more, and so economic growth continues indefinitely.

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