This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the role of profits in the neoclassical growth theory versus the new growth theory? What ... (Read 174 times)

xclash

  • Hero Member
  • *****
  • Posts: 681
on: Jun 29, 2018
What is the role of profits in the neoclassical growth theory versus the new growth theory?
 
  What will be an ideal response?

Question 2

One result of a decrease in aggregate demand and no change in aggregate supply is
 
  A) a recession.
  B) an increase in employment levels.
  C) an economic expansion.
  D) a rise in the price level.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

daiying98

  • Sr. Member
  • ****
  • Posts: 354
Reply #1 on: Jun 29, 2018
Answer to Question 1

Profits play essentially no role in the neoclassical growth theory. In the new growth theory, they are key because it is based on the idea that technological change results from the choices that people make in the pursuit of profit. Discoveries result from people's choices, such as whether to look for something new and, if so, how intensively to look. Profit affects these choices. A new discovery brings the discovered high profits but eventually competitors emerge and the above-average profit is competed away.

Answer to Question 2

A


xclash

  • Hero Member
  • *****
  • Posts: 681
Reply #2 on: Jun 29, 2018
Thank you


daiying98

  • Sr. Member
  • ****
  • Posts: 354
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Young adults usually grieve loss of a role, such as employment or the breakup of a relationship. Young adults usually grieve loss of a role, such as employment or the breakup of a relationship.
Role of the Whites of Eyes in Emotional Perception Role of the Whites of Eyes in Emotional Perception
The work of geneticists is valuable because genes play a role in virtually every aspect of ... The work of geneticists is valuable because genes play a role in virtually every aspect of ...
Explanation of endocrine versus exocrine. Explanation of endocrine versus exocrine.
Constant velocity versus positive velocity Constant velocity versus positive velocity
Homologous recombination: single versus double crossovers Homologous recombination: single versus double crossovers
Video: Epinephrine/NE (heart rate, altered blood flow, glycogenolysis & bronchodilation)

For a complete list of videos, visit our video library