New growth theorists believe that
A) wealth creation comes from innovation.
B) inventions spread very rapidly, thereby curtailing the need for more innovations.
C) wealth creation comes from saving.
D) wealth creation is due to capital spending and not research and development spending since much research and development spending fails to produce an invention.
Question 2
According to the classical model, prices and wages
A) must be set by government.
B) move upward easily, but are sticky downward.
C) are flexible.
D) move downward easily, but are sticky upward.
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