Author Question: Joseph Schumpeter argued that growth was a process of creative destruction. Explain what is meant by ... (Read 123 times)

Diane · **on:** Jun 30, 2018

Joseph Schumpeter argued that growth was a process of creative destruction. Explain what is meant by the phrase, creative destruction.

What will be an ideal response?

Question 2

The money demand curve will shift to the right when which of the following occurs?

A) an increase in income
B) a reduction in the interest rate
C) an increase in the money supply
D) all of the above
E) none of the above

31809pancho · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

When TP occurs and new goods are developed, old goods will disappear. In those industries that produced these old goods, employment will decrease. It is this process of technological progress causing the destruction of old jobs that is referred to as creative destruction.

Answer to Question 2

A