Author Question: In classical growth theory, if real GDP per person is above the subsistence level, A) population ... (Read 161 times)

michelleunicorn · **on:** Jun 29, 2018

In classical growth theory, if real GDP per person is above the subsistence level,

A) population grows and lowers real GDP per person to its subsistence level.
B) the pursuit of profit will cause economic growth to accelerate.
C) technological growth occurs and keeps real GDP per person above its subsistence level.
D) the economy will keep growing without limit.
E) None of the above is correct because the classical growth theory asserts that real GDP per person can never exceed the subsistence level.

Question 2

Spending on consumer durables decreases as the interest rate increases.

Indicate whether the statement is true or false