Multiple Choice
Classical growth theory argues that when real GDP per person rises above the subsistence level,
A) people donʹt want to work as much, decreasing labor supply.
B) the economy enjoys a period of permanent growth.
C) technological change slows down, stagnating the economy.
D) population growth increases, driving real GDP per person back to subsistence level.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: The aggregate production function describes the relationship
Q5: The growth rate of real GDP per
Q7: If the price level rises by 3
Q8: If the labor and capital grow more
Q10: An increase in saving that leads to
Q11: If the money wage rate rises relative
Q12: The assumption that population growth will lead
Q13: All of the following lead to more
Q14: Technological change<br>A) lowers the real wage rate.<br>B)
Q342: The demand curve for labor shows how