Multiple Choice
A recent article states that "...gains from two centuries of rapid technological innovation are largely exhausted, and new discoveries lack the same revolutionary quality....{Further}, 80 percent of the growth between 1950 and 1993 came from the new application of old ideas, and these old ideas are now mostly wrung dry."
(The Economist, 03/03/2011)
-If this quote is TRUE, what would the neoclassical growth theory predict?
A) Economic growth stops because most technological advances have already been made.
B) Economic growth is temporary regardless of technological change and GDP per person returns to subsistence levels.
C) Economic growth will persist indefinitely because technological change will accelerate again as firms seek profits.
D) Economic growth will accelerate because these technological changes are permanent.
Correct Answer:
Verified
Correct Answer:
Verified
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